Scottish and Newcastle case

A hotel operator purchased electrical lights, various decorations and murals, these included pictures, sculptures, wall plaques and tapestries.  The decorations and lighting were chosen to create a specific atmosphere and therefore the design performed a function of the business.  The whole expenditure was treated as a expense on plant and qualifies for capital allowances.

Please note that Finance Act 2008 introduced the Integral features regime, most of the items included in the case will now fall within this new regime.