Legislation: CAA 2001, s. 23(4) (list C, item 7), 27, 28, 63(5)

Key case law: none

HMRC material:


Special rules apply to treat as plant the cost incurred by a person in insulating a building or structure against heat loss (CAA 2001, s. 28). There is also a deeming provision to ensure that the plant or machinery is treated as belonging to the trader. In the event of a disposal, the disposal value is treated as nil (CAA 2001, s. 63(5)). The HMRC view is that the rules apply only to existing buildings, and not to new ones, and this principle is well established even though the wording of the legislation is not entirely clear on the point.

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