Tax question

Barry

Is lighting used in a building able to qualify as plant for corporate tax and therefore get 100% relief?

beverly hudson

As the lighting is able to be relocated and therefore "moveable" this would be considered plant so you would be able to claim 100% allowances.

Monsoon

It depends on whether it's moveable or whether it's integral features (IF, which depends on the lighting installation really). There is a list on what constitutes integral features as opposed to plant in the guidance somewhere.

I would be concerned that, say, strip lights in an office would not be plant - I'd look up the integral features list and guidance as a first port of call. If it's work lights that just plug in and can get moved about, as opposed to installed in the fabric of the building, these would be fine as plant I would have thought.

IF get a 10% WDA but do qualify for AIA so you would want to allocate all IF to your AIA allowance before ordinary plant, if expenditure in the year exceeds the AIA allowance.

Bluewednesday

Although it is classed as plant and machinery it is classed as integral fixtures and only allowed 10% capital allowances.

You can use your AIA as you have suggested but if you think that you may have reached the limit of the AIA you should use it against the lighting first as other plant and machinery would have 20% allowances claimable where this only has an allowance of 10%.

Does that make sense?

Bluewednesday

Great minds Monsoon

beverly hudson

But they would get 100% if it was "moveable" so that couldn't be classed as integral fixtures.

Bluewednesday

Lighting systems are specifically listed on the integral features list so I presume they are the installed kind and that's what I based my answer on.