One of the requirements for a lease of background plant or
machinery is that it is ‘affixed to or otherwise installed in
or on land which consists of or includes a building’.
Note that the plant or machinery does not have to become part
of the building. In other words the plant or machinery does not
have to be a fixture (see
CA26025)
but can have a much lower degree of annexation.
You should accept that any plant or machinery that fitted or
fixed in a particular location within the building is
‘installed’. Seek advice from CT & VAT (Technical)
if it is claimed that plant or machinery is installed where it is
neither fitted nor fixed to a particular location.
The plant or machinery does not have to be installed in a
building, though the land must include a building. So, for example,
plant or machinery such as security systems that are part of a car
park attached to an office block will be background plant or
machinery if leased with the office block and car park.
