Capital Allowances Act 2001 section 35

Expenditure on plant or machinery for use in dwelling-house not qualifying expenditure in certain cases

Section 35 restricts capital allowances on plant or machinery used in a dwelling-house where the qualifying activity is a property business or special leasing.

• The restriction applies to UK property businesses, overseas property businesses, and special leasing of plant or machinery.
• Expenditure on plant or machinery provided for use in a dwelling-house does not count as qualifying expenditure and therefore cannot attract capital allowances.
• Where plant or machinery serves both a dwelling-house and other purposes, the expenditure must be apportioned on a just and reasonable basis.
• Only the portion of expenditure relating to use outside the dwelling-house can qualify for capital allowances.