Corporation Tax Act 2009 section 263

Expenditure on integral features

Section 263 highlights that no tax deduction is available for certain expenditure on integral features of a building or structure, directing attention to the relevant capital allowances rules.

• Expenditure on integral features of a building or structure cannot be deducted as a revenue expense against profits.
• Integral features are defined in section 33A of the Capital Allowances Act 2001 and include items such as electrical and lighting systems, heating and air conditioning systems, and lifts.
• Instead of claiming a revenue deduction, such expenditure may qualify for capital allowances under the plant and machinery rules at the special rate.
• This restriction applies to both the initial provision and the replacement of integral features.