Capital Allowances Act 2001 section 490

Assured tenancy allowances

Section 490 sets out the basic conditions that must be met before capital allowances can be claimed under Part 10 in respect of expenditure on buildings containing dwelling-houses let on assured tenancies.

• Capital allowances are available where qualifying expenditure has been incurred on a building that consists of or includes a qualifying dwelling-house.
• A dwelling-house qualifies if it is currently let on an assured tenancy, or was previously let on an assured tenancy and is now subject to a regulated or housing association tenancy with an approved body as landlord.
• An assured tenancy means one within the Housing Act 1980 definition or the Housing Act 1988 definition, but expressly excludes assured shorthold tenancies under the 1988 Act.
• Further qualifying conditions relating to the landlord and certain exclusions are set out in sections 504, 505 and 506, including a rule that temporary disuse of the dwelling-house is disregarded.