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KembaraXtra – Legal Terms – Machinery and Plant
The legal expression machinery and plant generally refers to equipment, apparatus, and tools used in carrying on a business, excluding stock intended for sale. The concept is especially important in taxation and capital allowance law.
Although legislation does not provide a complete definition, courts have interpreted the term broadly. It can include machines, vehicles, tools, fixtures, and even unusual items that contribute to the functioning or atmosphere of a business.
Judicial decisions have recognized many items as plant, including railway engines, swimming pools, professional law books, decorative business fittings, and even working animals used in commercial activities. The courts focus on whether the item plays an active role in the business operation.
Businesses may claim tax relief through capital allowances and investment allowances on qualifying machinery and plant expenditure. These rules encourage investment in productive assets and commercial infrastructure.
The legal expression machinery and plant generally refers to equipment, apparatus, and tools used in carrying on a business, excluding stock intended for sale. The concept is especially important in taxation and capital allowance law.
Although legislation does not provide a complete definition, courts have interpreted the term broadly. It can include machines, vehicles, tools, fixtures, and even unusual items that contribute to the functioning or atmosphere of a business.
Judicial decisions have recognized many items as plant, including railway engines, swimming pools, professional law books, decorative business fittings, and even working animals used in commercial activities. The courts focus on whether the item plays an active role in the business operation.
Businesses may claim tax relief through capital allowances and investment allowances on qualifying machinery and plant expenditure. These rules encourage investment in productive assets and commercial infrastructure.
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