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HMRC internal manual

Business Leasing Manual

Defining long funding leases: funding leases that are not long funding leases: short leases: excluded leases: plant or machinery that is not to be treated as background plant or machinery

The third list, in article 4 of SI2007/303, describes types of plant or machinery that are deemed not to be background plant or machinery even if they would otherwise be treated as background plant or machinery. These are plant or machinery which is used for any of the purposes of

  1. storing, moving or displaying goods to be sold in the course of a trade, whether wholesale or retail,
  2. manufacturing goods or materials,
  3. subjecting goods or materials to a process,
  4. storing goods or materials-



  1. which are to be used in the manufacture of other goods or materials,
  2. which are to be subjected, in the course of a trade, to a process,
  3. which, having been manufactured or produced or subjected in the course of a trade to a process, have not yet been delivered to any purchaser, or
  4. on their arrival in the United Kingdom from a place outside the United Kingdom.

These definitions are based on concepts used for the purposes of Industrial Buildings Allowances. The relevant guidance at CA30000 onwards should be followed.