Integral features are the parts of a building that count as plant even though they are part of the fabric. They are the reason a company that has bought or refurbished commercial premises usually has a capital allowances claim it has not made, and they are the whole business of the capital allowances specialists in this site's firm record.
What is on the list
The legislation names them: electrical systems including lighting systems, cold water systems, space or water heating systems, powered systems of ventilation, air cooling or air purification and any floor or ceiling comprised in such systems, lifts, escalators and moving walkways, and external solar shading. That is the complete list and it is exhaustive. Anything in a building that is not on it and not otherwise plant is part of the setting and gets no plant and machinery allowance, though structures and buildings allowances may apply.
They go in the special rate pool
Integral features are written down at 6% rather than 14%, which sounds like a penalty and is really a recognition that they last as long as the building. They do qualify for the annual investment allowance, so a company spending under £1 million can still relieve them in full in year one, and they qualify for the 50% first-year allowance rather than full expensing. For a large refurbishment the difference between 6% a year and a first-year claim is the single biggest number in the computation.
Identifying them is a survey, not a bookkeeping exercise
A builder's invoice for a fit-out does not separate the electrical installation from the plastering, and neither does the completion statement on a property purchase. Establishing the qualifying proportion means someone pricing the elements from the drawings and the specification, which is what a capital allowances report is. On a second-hand building it also means checking what a previous owner already claimed, because fixtures can only be claimed once and the pooling and fixed value requirements constrain what a buyer can take.
Questions people ask about integral features capital allowances
What are integral features?
Electrical and lighting systems, cold water systems, space or water heating, powered ventilation, air cooling and purification systems with their floors and ceilings, lifts, escalators and moving walkways, and external solar shading.
What rate do integral features get?
They sit in the special rate pool and are written down at 6% a year, though they qualify for the annual investment allowance and the 50% first-year allowance.
Can I claim integral features in a building I bought second hand?
Often, but what a previous owner claimed limits it, and the pooling and fixed value requirements have to be met. It is the first thing a capital allowances specialist checks.