What is an integral feature?
Integral features are fixtures which have to be considered separately from other plant and machinery because they are subject to a set different rules and rates of capital allowances.
Exceptionally the Annual Investment Allowance applies to expenditure on both integral features and plant and machinery.
The integral features rules apply to expenditure incurred on or after 1 April 2008 on:
(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.
Expenditure on the cost or replacement of integral features are subject to a reduced rate of 10% writing down allowance for capital allowances.
Meaning of “replacement”
An integral feature is treated as being replaced where expenditure incurred is more than 50% of the cost of replacing the integral feature.
The rules link up any additional expenditure in the period of 12 months beginning with the initial expenditure being incurred. If all comes to more than 50% of the cost of replacing the integral feature (worked out as if all the expenditure was incurred at the time the initial expenditure was incurred) the cost is treated as if it is spent on the acquisition of a new asset.
Linked materials: Capital allowances: plant and machinery
