Capital Allowances Act 2001 section 191

Cessation of ownership on severance of fixture

Section 191 deals with what happens to deemed ownership of a fixture when it is permanently removed from the land to which it was attached.

• Under the fixtures rules, a person may be treated as the owner of a fixture even though it is legally part of the land
• If the fixture is permanently severed from the land, it ceases to be a fixture in law
• Where the person treated as owning the fixture does not actually own the item once it has been removed, they are treated as ceasing to own it at the point of severance
• If, however, the person does become the actual owner of the plant or machinery once it is severed, they simply continue as owner and no deemed cessation arises