After this date a new system will be introduced which will include a revised category of equipment as background plant.
This will be written down at a rate of 10% a year. Claims will need to be separated into background plant and trade-related plant.
Although all basic plant in a building will be covered the exact definitions have yet to be announced. However, the Revenue is likely to cover such things as heating, hot water and lifts.
The debate over the categories will inevitably provide some scope for new tax planning opportunities.
Until April 2008, companies which have not carried out a break down analysis will be able to submit claims on the current single pool basis with no separation of background plant.
There is no time limit on making historic claims on property expenditure and bringing these allowances into current tax computations.