A security asset or service is defined in FA89/S113 as an asset or service which improves personal security.
’Asset' includes equipment and a structure such as a wall.
So, items such as alarm systems, bullet resistant windows,
floodlighting, reinforced doors and windows and perimeter walls and
fences will qualify. The right to a deduction is not affected by
the fact that the asset may become affixed to land or a dwelling.
Rent paid to concerns specialising in the provision of alarm
systems is allowable. Any installation charges which the trader is
called upon by the agreement with the supplier to incur will
normally be disallowable capital expenditure, although capital
allowances may be available.
The following do not qualify as security assets:
What is a ’dwelling' is not defined. The word therefore
has its normal meaning. In particular it includes a flat used as a
residence, but a block of flats is not a single dwelling. A flat
above business premises where the taxpayer lives (as in Mason v
Tyson [1980] 53TC33) would also be a ’dwelling'.
What are ’grounds appurtenant to a dwelling' are also
not defined, so take their normal meaning. Guidance on the normal
meaning of the similar concept of ’garden or grounds' for the
purposes of private residence relief from CGT is at CG64350
onwards.
Although living accommodation does not qualify as a security
asset for the purposes of specific deductions under FA89/S112, this
does not affect exemption from tax as earnings on living
accommodation provided for employees as part of special security
arrangements (ITEPA03/S100).
A security service includes such things as the provision of security guards or bodyguards.
