Integral Features

Effective from April 2008, Integral Features were introduced as a new form of Plant & Machinery Allowances. This relief more closely reflects the depreciation rate of certain assets, which the Treasury has judged to have been written off too quickly in the past.

Integral Features relief is available for qualifying assets at a 8% per annum rate on a reducing balance basis (since April 2012). Assets covered by this relief include:

• Electrical systems (including lighting systems)
• Cold water systems
• Space or water heating systems, powered systems for ventilation, air cooling or air purification
• Lifts, escalators or moving walkways
• External solar shading

To gain maximum advantage from the reliefs now available, it’s vital that taxpayers use effective real-time systems to categorise expenditure correctly – and not infringe the new rules implemented since April 2008.

Any property acquisition strategy should look at Integral Features relief on assets that didn’t qualify previously. It is essential to gather sufficient claim information during contract enquiries, so that qualifying assets can be classified correctly.