Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Plant and machinery definition

What does Plant and machinery mean? In legal practice, plant and machinery describes the equipment, apparatus and machines a business uses to carry on its trade, as distinct from the land or buildings in which it operates. The expression is used across multiple contexts and, for specific purposes, is informed by legislation and case law. For tax, what counts as plant and machinery determines entitlement to capital allowances (UK: Capital Allowances Act 2001; Ireland: Taxes Consolidation Act 1997), including treatment of fixtures and integral features. For non-domestic rating/valuation, regulatory lists identify which plant and machinery is rateable (with separate regulations in England and Wales, Scotland and Northern...

UK capital allowances: definition of plant and machinery, the premises test, and statutory exclusions for buildings and structures (Lists B/C), with forthcoming 2026 rate and first-year allowance changes

Published by a LexisNexis Tax expert

Practice notes

FORTHCOMING CHANGES

At Budget 2025, the government announced measures to be legislated in Finance Bill 2026:

A reduction in the writing‑down allowance rate for main pool Plant and machinery from 18% to 14%, effective from 1 April 2026 for corporation tax and 6 April 2026 for income tax—affecting companies and unincorporated businesses with main rate expenditure that does not qualify for, or predates, first‑year allowances such as the super‑deduction and full expensing.
A new 40% first‑year allowance for qualifying main rate expenditure incurred from 1 January 2026, with fewer restrictions than other FYAs—primarily assisting spend not otherwise covered by the £1m annual investment allowance or existing FYAs (including full expensing). It applies to all businesses and includes assets used for leasing (excluding overseas leasing), while expenditure on cars and second‑hand assets is excluded.
An extension of the 100% green first‑year allowances for qualifying expenditure on zero‑emission cars and electric vehicle charging points by one year to 31 March 2027 for corporation tax and 5 April 2027 for income tax.

These changes are to be introduced through Finance Bill 2026...

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Web page updated on 22/05/2026

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