If premises are rented, then everything ‘fixed' to those premises becomes part of the premises.

If that business fails, then the landlord will own those improvements even though they didn't pay for them.

There are potential advantages to having equipment separate from the land and buildings (being Plant & Equipment as opposed to Fixtures & Fittings):-

• Better depreciation
• The flexibility to modify and replace equipment as required
• The ability to relocate equipment within the premises to another location

Whether something is ‘fixed' is based on case law and sometimes some surprising answers, so ask your adviser.