(1)For the purposes of this Act, expenditure on the provision of plant or machinery does not include expenditure on the provision of a building.
(2)The provision of a building includes its construction or acquisition.
(3)In this section, “building” includes an asset which—
(a)is incorporated in the building,
(b)although not incorporated in the building (whether because the asset is moveable or for any other reason), is in the building and is of a kind normally incorporated in a building, or
(c)is in, or connected with, the building and is in list A.
| 1. | Walls, floors, ceilings, doors, gates, shutters, windows and stairs. |
| 2. | Mains services, and systems, for water, electricity and gas. |
| 3. | Waste disposal systems. |
| 4. | Sewerage and drainage systems. |
| 5. | Shafts or other structures in which lifts, hoists, escalators and moving walkways are installed. |
| 6. | Fire safety systems. |
(4)This section is subject to section 23.
(1)For the purposes of this Act, expenditure on the provision of plant or machinery does not include expenditure on—
(a)the provision of a structure or other asset in list B, or
(b)any works involving the alteration of land.
| 1. | A tunnel, bridge, viaduct, aqueduct, embankment or cutting. |
| 2. | A way, hard standing (such as a pavement), road, railway, tramway, a park for vehicles or containers, or an airstrip or runway. |
| 3. | An inland navigation, including a canal or basin or a navigable river. |
| 4. | A dam, reservoir or barrage, including any sluices, gates, generators and other equipment associated with the dam, reservoir or barrage. |
| 5. | A dock, harbour, wharf, pier, marina or jetty or any other structure in or at which vessels may be kept, or merchandise or passengers may be shipped or unshipped. |
| 6. | A dike, sea wall, weir or drainage ditch. |
| 7. | Any structure not within items 1 to 6 other than— (a) a structure (but not a building) within Chapter 2 of Part 3 (meaning of “industrial building”), (b) a structure in use for the purposes of an undertaking for the extraction, production, processing or distribution of gas, and (c) a structure in use for the purposes of a trade which consists in the provision of telecommunication, television or radio services. |
(2)The provision of a structure or other asset includes its construction or acquisition.
(3)In this section—
(a)“structure” means a fixed structure of any kind, other than a building (as defined by section 21(3)), and
(b)“land” does not include buildings or other structures, but otherwise has the meaning given in Schedule 1 to the Interpretation Act 1978 (c. 30).
(4)This section is subject to section 23.
(1)Sections 21 and 22 do not apply to any expenditure to which any of the provisions listed in subsection (2) applies.
(2)The provisions are—
section 28 (thermal insulation of industrial buildings);
section 29 (fire safety);
section 30 (safety at designated sports grounds);
section 31 (safety at regulated stands at sports grounds);
section 32 (safety at other sports grounds);
section 33 (personal security);
section 71 (software and rights to software);
section 40D of F(No.2)A 1992 (election relating to tax treatment of films expenditure).
(3)Sections 21 and 22 also do not affect the question whether expenditure on any item described in list C is, for the purposes of this Act, expenditure on the provision of plant or machinery.
(4)But items 1 to 16 of list C do not include any asset whose principal purpose is to insulate or enclose the interior of a building or to provide an interior wall, floor or ceiling which (in each case) is intended to remain permanently in place.
| 1. | Machinery (including devices for providing motive power) not within any other item in this list. |
| 2. | Electrical systems (including lighting systems) and cold water, gas and sewerage systems provided mainly— (a) to meet the particular requirements of the qualifying activity, or (b) to serve particular plant or machinery used for the purposes of the qualifying activity. |
| 3. | Space or water heating systems; powered systems of ventilation, air cooling or air purification; and any floor or ceiling comprised in such systems. |
| 4. | Manufacturing or processing equipment; storage equipment (including cold rooms); display equipment; and counters, checkouts and similar equipment. |
| 5. | Cookers, washing machines, dishwashers, refrigerators and similar equipment; washbasins, sinks, baths, showers, sanitary ware and similar equipment; and furniture and furnishings. |
| 6. | Lifts, hoists, escalators and moving walkways. |
| 7. | Sound insulation provided mainly to meet the particular requirements of the qualifying activity. |
| 8. | Computer, telecommunication and surveillance systems (including their wiring or other links). |
| 9. | Refrigeration or cooling equipment. |
| 10. | Fire alarm systems; sprinkler and other equipment for extinguishing or containing fires. |
| 11. | Burglar alarm systems. |
| 12. | Strong rooms in bank or building society premises; safes. |
| 13. | Partition walls, where moveable and intended to be moved in the course of the qualifying activity. |
| 14. | Decorative assets provided for the enjoyment of the public in hotel, restaurant or similar trades. |
| 15. | Advertising hoardings; signs, displays and similar assets. |
| 16. | Swimming pools (including diving boards, slides and structures on which such boards or slides are mounted). |
| 17. | Any glasshouse constructed so that the required environment (namely, air, heat, light, irrigation and temperature) for the growing of plants is provided automatically by means of devices forming an integral part of its structure. |
| 18. | Cold stores. |
| 19. | Caravans provided mainly for holiday lettings. |
| 20. | Buildings provided for testing aircraft engines run within the buildings. |
| 21. | Moveable buildings intended to be moved in the course of the qualifying activity. |
| 22. | The alteration of land for the purpose only of installing plant or machinery. |
| 23. | The provision of dry docks. |
| 24. | The provision of any jetty or similar structure provided mainly to carry plant or machinery. |
| 25. | The provision of pipelines or underground ducts or tunnels with a primary purpose of carrying utility conduits. |
| 26. | The provision of towers to support floodlights. |
| 27. | The provision of— (a) any reservoir incorporated into a water treatment works, or (b) any service reservoir of treated water for supply within any housing estate or other particular locality. |
| 28. | The provision of— (a) silos provided for temporary storage, or (b) storage tanks. |
| 29. | The provision of slurry pits or silage clamps. |
| 30. | The provision of fish tanks or fish ponds. |
| 31. | The provision of rails, sleepers and ballast for a railway or tramway. |
| 32. | The provision of structures and other assets for providing the setting for any ride at an amusement park or exhibition. |
| 33. | The provision of fixed zoo cages. |
(5)In item 19 of list C, “caravan” includes, in relation to a holiday caravan site, anything that is treated as a caravan for the purposes of—
(a)the Caravan Sites and Control of Development Act 1960 (c. 62), or
(b)the Caravans Act (Northern Ireland) 1963 (c. 17 (N.I.)).
(1)For the purposes of this Act, expenditure on the provision of plant or machinery does not include expenditure on the acquisition of an interest in land.
(2)In this section “land” does not include—
(a)buildings or other structures, or
(b)any asset which is so installed or otherwise fixed to any description of land as to become, in law, part of the land,
but otherwise has the meaning given in Schedule 1 to the Interpretation Act 1978 (c. 30).
(3)Subject to subsection (2), “interest in land” has the meaning given by section 175 (definitions in connection with provisions about fixtures).
If a person carrying on a qualifying activity incurs capital expenditure on alterations to an existing building incidental to the installation of plant or machinery for the purposes of the qualifying activity, this Part applies as if—
(a)the expenditure were expenditure on the provision of the plant or machinery, and
(b)the works representing the expenditure formed part of the plant or machinery.