Glossary

Plant and machinery

Plant and machinery is the tax category of equipment, tools, vehicles and certain fixtures a business uses — the assets that generally qualify for capital allowances.

2 min read

Qualifying assetsFor allowances

BroadTools to equipment

Definition

Plant and machinery is the tax term for the equipment, tools, machines, vehicles and certain fixtures a business uses in its trade — the assets that generally qualify for capital allowances.

In plain terms

It is broader than it sounds: not just factory machines but computers, commercial vehicles, tools, and integral features of a building like heating or wiring can count. Land and most of the building fabric itself do not.

Why it matters for your company

Whether an asset is plant and machinery decides if you can claim capital allowances — including the Annual Investment Allowance — and cut your taxable profit. Classifying spend correctly is worth real money.