FA2008 introduced a new classification of integral features of a building or structure, expenditure on the provision or replacement of which qualifies for WDAs at the 10% special rate. The new classification applies to qualifying expenditure incurred on or after 1 April 2008 (CT) or 6 April 2008 (IT).
The new rules on integral features apply where a person carrying on a qualifying activity incurs expenditure on the provision or replacement of an integral feature for the purposes of that qualifying activity. Each of the following is an integral feature of a building or structure –
- an electrical system (including a lighting system),
- a cold water system,
- a space or water heating system, a powered system of ventilation, air cooling or air purification, and any floor or ceiling comprised in such a system,
- a lift, an escalator or a moving walkway,
- external solar shading
Only assets that are on the list are integral features for PMA purposes; if an asset is not one of those included in the list, the integral features rules are not in point.
However, Plant and Machinery includes….
other building fixtures, such as shop fittings, kitchen and bathroom fittings
Many businesses have never claimed capital allowances for these items and I found this article by Steve Bone http://www.curtisplumstone.com/wp-content/uploads/2011/06/Election-Agreements-Steven-Bone.pdf
It explains how elections can be made to claim the allowances using S198 of the Capital Allowances Act 2001.
HMRC have further details on this link http://www.hmrc.gov.uk/manuals/camanual/ca26850.htm
The alternative is to agree a S562 ‘Just and Reasonable Apportionment’ of the sale price.
Elections need to be made within 2 years.
There are calculators on the internet to help you assess the potential value of your claim