CA21230 - PMA: Meaning of plant & machinery: Football ground improvements
Football clubs may incur expenditure on ground improvements in order to implement the recommendations of the Taylor report. The Inland Revenue had discussions with the Football League about what expenditure is likely to qualify for capital allowances. Following those discussions the Inland Revenue sent the Football League a letter on 25 January 1991 indicating what expenditure is likely to qualify. The letter listed as an appendix the sort of assets used by a football club in its trade that would normally qualify as plant or machinery. This is the list:
| 1 | Advertising hoardings and perimeter boards which are not simply part of a perimeter fence or other structure |
| 2 | Air conditioning plant, fans and ventilation machinery |
| 3 | Automatic exit doors and gates |
| 4 | Bicycle holders |
| 5 | Cameras, televisions, video recorders |
| 6 | Cars, coaches and vans |
| 7 | Computers, printers, photocopiers, typewriters and cash registers |
| 8 | Cookers, fridges, freezers, microwaves, dishwashing machines |
| 9 | Crush barriers securely fixed to the ground are not plant or machinery but they may come within the 1975 safety legislation and so qualify under CAA01/S32 CA22240 |
| 10 | Electric scoreboards and visual displays |
| 11 | Fencing is not plant or machinery but it may come within the 1975 safety legislation and so qualify under CAA01/S32 CA22240 |
| 12 | Fire alarm systems, fire extinguishers, sprinkler systems |
| 13 | Floodlighting |
| 14 | Floor coverings that are not part of the building or structure; for example, carpets (but not tiles which are stuck down) |
| 15 | Goalposts and certain movable training equipment of a capital nature, for example, a vaulting horse (but not equipment which is part of the premises) |
| 16 | Heating installations, boilers and water heaters |
| 17 | Lifts and hoists |
| 18 | Public address equipment - microphones, amplifiers and loudspeakers |
| 19 | Racking, shelving, cupboards and furniture |
| 20 | Telephones and telephone equipment, for example, private exchanges. |
| 21 | Toilet sanitary ware, sinks and basins, baths and showers whether for staff or public (but not the mains water supply) |
| 22 | Turnstiles and spectator counting equipment |
The letter gave some guidance on seats. It said that most modern
types of seats are likely to qualify as plant or machinery, both
plain plastic tip-up seats and more luxurious types of seat. It
makes it clear that seating which is no more than an integral part
of the stand will not qualify.
It says that the incidental costs of installing seats, or any
other type of plant or machinery, may qualify under CAA01/S25
CA21190. It says that expenditure will
not qualify as incidental if it creates an essentially new asset
such as a stand or a terrace with an entirely new rake. It also
says that we would not expect expenditure to qualify as incidental
if it is large in proportion to the cost of the plant or machinery
being installed.
Remember that not all expenditure incurred by clubs to comply
with the requirements of the Football Spectators Act 1989 will
qualify for capital allowances. The normal rules will apply.
The letter states that expenditure on the fabric of a police
control box will not qualify for capital allowances. We have now
been advised that some local authorities take the view that they
have the power under the Safety at Sports Grounds Act 1975 to
require police control rooms to be installed. If that happens the
expenditure will qualify under CAA01/S32
CA22240.
