Capital Allowances Act 2001 Schedule 3 paragraph 32

Equipment lessor has right to sever fixture that is not part of building

Schedule 3 paragraph 32 provides transitional rules that modify or disapply the equipment lessor fixture provisions in section 179 for older leasing agreements and earlier expenditure.

• Section 179(1) does not apply at all where the plant or machinery lease agreement was entered into before 19 March 1997.
• Where the equipment lessor's expenditure was incurred before 24 July 1996, section 179 applies in a simplified form with certain conditions removed.
• Specifically, the requirement in paragraph (g) of section 179 is omitted for pre-24 July 1996 expenditure, reducing the number of conditions that must be satisfied.
• These transitional provisions protect older arrangements from being caught by rules that were introduced or tightened at later dates.