Defining long funding leases: funding leases that are not long funding leases: short leases: excluded leases: requirement to be affixed to or otherwise installed in or on land
One of the requirements for a lease of background plant or machinery is that it is ‘affixed to or otherwise installed in or on land which consists of or includes a building’.
Note that the plant or machinery does not have to become part of the building. In other words the plant or machinery does not have to be a fixture (see CA26015 but can have a much lower degree of annexation.
You should accept that any plant or machinery that fitted or fixed in a particular location within the building is ‘installed’. Seek advice from CTIS (CT&BIT) if it is claimed that plant or machinery is installed where it is neither fitted nor fixed to a particular location.
The plant or machinery does not have to be installed in a building, though the land must include a building. So, for example, plant or machinery such as security systems that are part of a car park attached to an office block will be background plant or machinery if leased with the office block and car park.