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HMRC internal manual

Capital Allowances Manual

PMA: Fixtures: Scope of fixtures legislation

CAA01/S172, CAA01/S172A and CAA01/S202 (2)

The fixtures legislation provides a comprehensive code for fixtures. A person is only entitled to claim PMA on a fixture if the fixtures legislation treats the person as owning the fixture. Where the fixtures legislation treats a person as owning a fixture no other person is entitled to a PMA in respect of the fixture (other than on a contribution).

There is an exception to this. The fixtures legislation does not apply to an asset let under a long funding lease CA23800. If there is a chain of leases the fixtures legislation does not apply if any lease in the chain is a long funding lease.

If a person entitled to PMA on a fixture brings a disposal value to account in respect of the fixture, that person is no longer entitled to an allowance in respect of the expenditure incurred on the fixture. This does not mean that you should try to remove the expenditure from whatever pool it is in. All it means is that if the person is a lessor the person cannot make an election under CAA01/S183 CA26350 if they grant a lease.

A person who makes a contribution towards expenditure incurred on the provision of a fixture may be able to claim capital allowances on that contribution under CAA01/S537-538 CA14500. In order to satisfy the conditions of section 537-538 CA14500 the person who receives the contribution must be the person who is treated as owning the fixture under CAA001.


As in the example at CA26025 Xanadu Properties Plc owns the freehold of Kane House and grants a long lease of Kane House to Budokan Computers at a premium. Budokan Computers installs air conditioning and Xanadu Properties Plc makes a contribution towards the cost. The fixtures legislation treats Budokan Computers as the owner of the air conditioning and so Xanadu Properties Plc can claim PMA on its contribution, subject to the conditions in CAA01/S537-538 CA14500.