When preparing capital allowances claims the difficult question we need to answer is ‘Is this plant and machinery?’. With this, except for integral features, the capital allowances act provides no definition, furthermore HMRC capital allowances manuals confirm this vagueness (CA21100). In light of a lack of statutory guidance, we are left to find our way with case law precedents, the first of which dates back to 1887. Yarmouth v France: ‘whatever apparatus is used by a businessman for carrying on his business… All goods and chattels, fixed or movable, live or dead, which he keeps for permanent employment in his business’.
Below is a round up of recent tax cases: