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CA22360 | Plant and Machinery Allowances (PMA): buildings and structures: expenditure on integral features: AIA, short-life asset treatment and so on

From HM Revenue & Customs · Capital Allowances Manual

Short-life asset treatment

A person may not make a short-life asset (CA23600) election in respect of integral feature expenditure. The facility to elect for short-life asset treatment for any type of special rate expenditure is ruled out by S84 CAA01.

Annual Investment Allowance (AIA)

A person may, however, claim AIA on special rate expenditure CA23084, including on his or her expenditure on integral features. In general, businesses are free to allocate their AIA to AIA qualifying expenditure in any way they see fit. They are therefore free to set their AIA against expenditure qualifying for the lower special rate of WDA, before using any balance against their main rate expenditure.