Capital expenditure may be incurred on preparing land as a site
for the installation of plant or machinery. Land preparation
includes cutting, tunnelling or levelling land.
If capital expenditure is incurred on preparing a site for
the installation of plant or machinery and there are no other
allowances available on that expenditure, the plant or machinery is
treated as a building for the purposes of IBA. This lets the
expenditure on site preparation qualify for IBA because it can then
be treated as expenditure on the construction of a building. The
treatment of the plant or machinery is not affected. It will
qualify for plant and machinery allowances in the normal way.
