Capital Allowances Act 2001 section 33A

Expenditure on provision or replacement of integral features

Section 33A treats expenditure on providing or replacing certain integral features of a building or structure as capital expenditure on plant and machinery, qualifying for writing-down allowances at the special rate.

• Specified integral features of buildings — including electrical systems, cold water systems, heating and ventilation systems, lifts, escalators, moving walkways, and external solar shading — are treated as plant and machinery for capital allowances purposes.
• Expenditure on these integral features qualifies for writing-down allowances at the special rate rather than the main rate, reflecting the longer economic life of these assets compared with other plant and machinery.
• The definition excludes any asset whose principal purpose is to insulate or enclose the interior of a building, or to provide permanent interior walls, floors or ceilings; however, plenum floors or ceilings that function as part of a heating or air conditioning system do qualify.
• The Annual Investment Allowance (AIA) can be used against integral features expenditure, and the Treasury has the power to amend the list of integral features by order.

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