Capital Allowances Act 2001 section 25

Building alterations connected with installation of plant or machinery

Section 25 deals with the tax treatment of capital expenditure on alterations to an existing building when those alterations are incidental to the installation of plant or machinery used for a qualifying activity.

• Capital expenditure on building alterations incidental to installing plant or machinery qualifies for plant and machinery allowances
• The alteration expenditure is treated as if it were expenditure on the provision of the plant or machinery itself
• The physical works carried out as part of the alterations are deemed to form part of the plant or machinery for capital allowances purposes
• The building must be an existing building and the alterations must be for the purposes of a qualifying activity