The distinction between fixtures and chattels – part 1: the general law of fixtures and state taxes

Published on 01 Aug 22 by "THE TAX SPECIALIST" JOURNAL ARTICLE

Determining whether an item of personal property (a chattel) that has been attached to land retains its character as such or whether it has been incorporated into the land so as to be a fixture is an issue of property law that continues to generate disputes, as seen recently in two Supreme Court cases involving wind farm assets. The conclusion drawn in any particular set of circumstances can lead to divergent outcomes in relation to numerous tax issues. This article provides an overview of the general law of fixtures and considers the implications for state taxes. Part 2 will turn to income tax issues, focusing on depreciation, CGT, Division 6C of the Income Tax Assessment Act 1936 and the managed investment trust (MIT) rules, and international tax.

Author profile

Celeste BLACK

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