Who is affected by the exclusion in section 34 of the Capital Allowances Act 2001?

Section 34 affects members of the House of Commons, the Scottish Parliament, the National Assembly for Wales (now the Senedd), and the Northern Ireland Assembly. It prevents these elected members from claiming plant and machinery capital allowances on expenditure connected with residential or overnight accommodation used for their parliamentary or assembly duties.

What types of expenditure does section 34 exclude from qualifying for capital allowances?

Section 34 excludes all expenditure on residential or overnight accommodation by qualifying members, including spending on the property itself and any costs connected with its provision or use. This covers fixtures, fittings, furniture, and equipment within the accommodation, even if those items would normally qualify as plant.

What is the purpose test under section 34 of the Capital Allowances Act 2001?

The exclusion applies only where accommodation is used to enable a member to perform their legislative duties. Those duties must be carried out in or around where the legislative body sits, such as Westminster for MPs, or in or around the constituency or region the member represents. Both main locations are covered.

Can an MP claim capital allowances on furniture purchased for a flat used for parliamentary duties?

No. Even though furniture might normally qualify as plant for capital allowances purposes, section 34 prevents an MP from claiming allowances on any such expenditure. If the furniture is connected with residential accommodation used for parliamentary duties, the entire amount is excluded from being qualifying expenditure under the capital allowances regime.

Capital Allowances Act 2001 section 34

Expenditure by MPs and others on accommodation

Section 34 prevents members of the House of Commons and the devolved legislatures from claiming plant and machinery capital allowances on expenditure related to residential or overnight accommodation used for their parliamentary duties.

Expenditure on residential or overnight accommodation by members of the House of Commons, Scottish Parliament, National Assembly for Wales, or Northern Ireland Assembly does not count as qualifying expenditure for capital allowances purposes.
The exclusion covers expenditure on providing or using such accommodation, as well as any costs connected with that provision or use.
The accommodation must be for the purpose of enabling the member to carry out their duties in or around the place where the legislative body sits, or in or around the constituency or region they represent.
This rule applies regardless of whether the accommodation is near the parliament or assembly building, or near the member's constituency or regional base.

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