Section 33A — Finance Act 2008: Expenditure on provision or replacement of integral features

Expenditure on provision or replacement of integral features 33A 1 This section applies where a person carrying on a qualifying activity incurs expenditure on the provision or replacement of an integral feature of a building or structure used by the person for the purposes of the qualifying activity.

2 This Part (including in particular section 11(4)) applies as if—

a the expenditure were capital expenditure on the provision of plant or machinery for the purposes of the qualifying activity, and b the person who incurred the expenditure owned plant or machinery as a result of incurring it.

3 If the expenditure is qualifying expenditure, it may not be deducted in calculating the income from the qualifying activity.

4 If the expenditure is not qualifying expenditure, whether it may be so deducted is to be determined without regard to this section.

5 For the purposes of this section each of the following is an integral feature—

a an electrical system (including a lighting system),

b a cold water system, c 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, d a lift, an escalator or a moving walkway, e external solar shading.

6 The items listed in subsection (5) do not include any asset whose principal purpose is to insulate or enclose the interior of a building or to provide an interior wall, floor or ceiling which (in each case) is intended to remain permanently in place.

7 The Treasury may by order—

a provide that subsection (5) does not include a feature of a building or structure specified in the order, expenditure on which would (if not within subsection (5)) be qualifying expenditure other than special rate expenditure, and b add to the list in subsection (5) a feature of a building or structure expenditure on the provision of which would not (apart from the order) be expenditure on the provision of plant or machinery.

8 An order under subsection (7) may make such incidental, supplemental, consequential and transitional provision as the Treasury thinks fit.