Capital Allowances Act 2001 section 505

Qualifying dwelling-houses: exclusions

Section 505 sets out the circumstances in which a dwelling-house is excluded from being treated as a qualifying dwelling-house for the purposes of flat conversion allowances.

• Certain landlords such as approved housing associations and self-build societies are excluded from claiming these allowances
• Lettings where the landlord and tenant are connected persons, or where the tenant is a director of or participator in the landlord company, do not qualify
• Close company landlords are excluded where the tenant is a participator in the company or an associate of a participator
• Tenancies entered into as part of a mutual arrangement designed to circumvent the connected persons and participator exclusions are also disqualified