Chapter 6 - 1.2 - Plant and Machinery Flashcards
1
Q
Capital allowances are only allowed on…
A
Plant and machinery
2
Q
How do we define plant and machinery?
A
Plant and machinery are assets WITH WHICH the business operates (e.g computers), rather than IN WHICH the business operates (e.g buildings)
3
Q
What does machinery include?
A
Machines, motor vehicles and computers
4
Q
What does plant include?
A
Fixtures and fittings, furniture and equipment
5
Q
Case law has allowed which particular exception?
A
Building alterations incidental to the installation of plant and machinery, and licences to computer software, also qualify for capital allowances
