ChD 27 January 1994, BMI (No 3) Ltd (B) leased plant and machinery to local authorities consisting of central heating units for installing in council houses and a range of miscellaneous items including boilers and swimming pool equipment. The Crown refused B`s claim to writing down allowances pursuant to Finance Act 1971 s44(1) on the grounds that the equipment became fixtures in premises owned by local authorities and ceased to belong to BMI. The Special Commissioners upheld B`s claim that the equipment remained chattels because of the leasing agreement and that they were entitled to capital allowance under Finance Act 1985 s59 and Sch 17 para 3. On appeal by the Crown, held that the central heating units once installed in a council house belonged to the tenant and expenditure incurred on it did not qualify for capital allowances under the 1971 Act. Regarding the miscellaneous equipment, as local authorities are fully exempt from income and corporation taxes, the terms of the Financ