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HMRC internal manual

Capital Allowances Manual

Assured Tenancy Allowances: Qualifying expenditure: attributable to a dwelling house


If a building is a single qualifying dwelling house the whole of the qualifying expenditure is attributable to it subject to the relevant limit.

If the dwelling house forms part of a building, the qualifying expenditure attributable to it is the sum of the two following amounts, subject to the relevant limit:

  1. the part of the qualifying expenditure properly attributable to that dwelling house, and
  2. if there are common parts of the building, the part of the qualifying expenditure on those common parts which it is just and reasonable to attribute to the dwelling house. The proportion of the expenditure on the common parts attributed to the dwelling house cannot be more than 10% of the capital expenditure apportioned to that dwelling house under (a) above.

If the dwelling house is in Greater London the relevant limit is £60,000. If it is anywhere else the relevant limit is £40,000. Greater London is the area comprising theareas of the London boroughs, the City and the Temples.

Common parts are common parts of a building which:

  • are not intended to be in separate occupation (whether for domestic, commercial, or other purposes), and
  • are intended to be of benefit to some or all of the qualifying dwelling houses included in the building.


The qualifying expenditure on any common parts is so much of the expenditure on the construction of the building as it is just and reasonable to attribute to those parts.

If you have to apportion expenditure on the common parts of a building and separate figures are not available, make the apportionment on any reasonable basis. Examples of reasonable bases are by reference to floor space, cubic contents etc. If, exceptionally,you think that a floor space etc type of apportionment would not produce a reasonable result, and the amounts involved are significant, consult CT&VAT (Technical).