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What is an integral feature?

Integral features come under the heading Plant and machinery but like Fixtures have to be considered separately 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.

(f) Solar panels which were specifically designated as special rate assets from 1 April 2012 for corporation tax and 6 April 2012 for income tax.

Expenditure on the cost or replacement of integral features are subject to a reduced rate of writing down allowance for capital allowances (8% from April 2012 and 6% from April 2019).  


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 effect of this measure is that the replacement expenditure is not deductible against income, instead the cost is capitalised and subject to capital allowances.

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. 

Example 1:

Polly would like to replace the electrical system in her seaside restaurant.

Example 2:

Small print and Links

Capital allowances: plant and machinery

Fixtures: overview

Legislation: CAA 2001 s33A & 33B