IBA: Qualifying expenditure: Site preparation
Capital expenditure may be incurred on preparing land as a site for the installation of plant or machinery. Land preparation includes cutting, tunnelling or levelling land.
If capital expenditure is incurred on preparing a site for the installation of plant or machinery and there are no other allowances available on that expenditure, the plant or machinery is treated as a building for the purposes of IBA. This lets the expenditure on site preparation qualify for IBA because it can then be treated as expenditure on the construction of a building. The treatment of the plant or machinery is not affected. It will qualify for plant and machinery allowances in the normal way.