CA23060 - PMA: Qualifying expenditure: Plant and machinery in dwelling house

CAA01/S35

Expenditure incurred on the provision of plant or machinery for use in a dwelling house is not qualifying expenditure for a Schedule A business, an overseas property business or the special leasing of plant or machinery. A dwelling house is a building, or part of a building, which is a person's home. A person's second or holiday home is a dwelling house as is a flat that is used as a residence. A block of flats is not a dwelling house although the individual flats within the block may be. University halls of residence, accommodation used for holiday letting, a hospital, a nursing home or a prison are not dwelling houses.

Example Bob is a landlord. He owns a block of flats and a nursing home. He buys:

• new cookers for the flats;
• a new fire alarm system for the block of flats; and
• new beds for the nursing home.

His expenditure on the cookers is not qualifying expenditure and so does not qualify for PMAs because it is expenditure on assets for use in dwelling houses. The prohibition does not apply to the fire alarm system for the block of flats or the beds for the nursing home because they are not for use in a dwelling house.