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HMRC internal manual

Capital Allowances Manual

Plant and Machinery Allowances (PMA): hire purchase: fixtures


The hire purchase legislation treats a person as the owner of an asset being bought on hire purchase even though as a matter of law the asset belongs to somebody else.

The fixtures legislation (CA26000) also treats a person that is not the owner of an asset as its owner.

Where both the hire purchase and the fixtures legislation apply these are the rules.

The hire purchase legislation does not apply to an asset that is a fixture. The fixtures legislation can apply to an asset that is a fixture that is being bought on hire purchase.

If an asset that is being bought under a hire purchase contact becomes a fixture and the person treated as the owner of the asset under the hire purchase legislation is not treated as the owner by the fixtures legislation the person is treated as ceasing to own the asset when it becomes a fixture. This means that the person has to bring a disposal value to account.