Capital Allowances Act 2001 section 179

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

Section 179 sets out the conditions that must be met for an equipment lessor to be treated as the owner of plant or machinery that has become a fixture on land that is not a building, allowing the lessor to claim capital allowances.

• The plant or machinery must become a fixture by being fixed to land that is neither a building nor part of a building, and the equipment lessee must hold an interest in the land when taking possession under the lease
• The lease must give the equipment lessor both the right to sever the plant or machinery at the end of the lease period and ownership of it upon severance
• The plant or machinery must be of a nature and fixed in a way that allows it to be reused for the same purposes on different premises after severance, and the lease must be classified as an operating lease under generally accepted accounting practice
• The lease must not be for plant or machinery used in a dwelling-house