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Dwelling-houses

Introduction

There are several references to dwelling-house in CAA01. The term appears in

• Part 2 (plant and machinery allowances – see CA23060),
• Part 2A (structures and buildings allowances – see CA92600, but note that the exclusion for 'residential use' is not limited to 'dwelling houses' - see CA92500),
• Part 3A (business premises renovation allowances – see CA45000), and 
• Part 6 (research and development allowances – see CA60000).

There is no definition of 'dwelling-house' in these Parts of CAA01 and so the term takes its ordinary meaning. A dwelling-house is a building, or a part of a building; its distinctive characteristic is its ability to afford to those who use it the facilities required for day-to-day private domestic existence (namely, bathroom and kitchen facilities and a place to rest and sleep).

When deciding whether something is a 'dwelling-house,' you should focus on the physical features of the property. In most cases there should be little difficulty in deciding whether particular premises comprise a dwelling-house: If a property has the physical facilities required for day-to-day private domestic existence this will usually be sufficient evidence to conclude that it is a dwelling-house. However, each case should be decided on its particular facts and in difficult cases, actual use (although not in itself determinative) is a factor that may be taken into account.  Dwelling-houses tend to be used for private living accommodation (long-term or short-term, residential or holiday), therefore properties that are clearly put to different uses may not be dwelling-houses. For example, nursing homes and dentist surgeries are not dwelling-houses even if they are located in what used to be private residences. 

A property doesn't cease to be a dwelling-house merely because it is vacant or temporarily incapable of use, for example owing to weather conditions or a national emergency. 

Second homes and holiday accommodation

A person’s second or holiday home or accommodation used for holiday letting is a dwelling-house.

Blocks of flats

A block of flats is not a dwelling-house although the individual flats within the block will be dwelling-houses.

The common parts of a building which contains two or more dwelling-houses, for example the stairs and lifts, will not comprise a dwelling-house.

Houses in multiple occupancy

A house in multiple occupancy is a dwelling-house. We are aware that some taxpayers have submitted claims for plant and machinery allowances in respect of shared parts of houses in multiple occupation (such as hallways, stairs, landings, attics and basements within the houses). They contend that these shared areas are not part of the dwelling-house and that allowances are therefore available.  We disagree with this position. If you come across such a claim, please notify the Capital Allowances single point of contact for your area.

Nursing homes, hotels etc.

A hospital, a prison, a nursing home, a residential care home, a hostel or hotel (run as a trade and offering services, whether by an owner-occupier or by a tenant) is not a dwelling-house.

Serviced apartments

Serviced apartments are dwelling-houses, regardless of whether they are let on long-term or short-term lets.

Sheltered accommodation

Sheltered accommodation is typically provided in self-contained flats or bungalows with all the normal facilities where residents can live independently but have access to on-call support and care. These are dwelling-houses.

'Supported housing' and 'specialised supported housing'

'Supported housing' would usually be a dwelling-house. 'Specialised supported housing' is a sub-set of 'supported housing' specifically for residents who require a high level of support, for whom the only acceptable alternative would be a care home. Each case needs to be decided on its particular facts, but 'specialised supported housing' may not be a 'dwelling-house' if due to the high level of care the residents have very little privacy.

Student accommodation

A University hall of residence may be one of the most difficult types of premises to decide because there are so many variations in student accommodation. On the one hand, an educational establishment that provides on-site accommodation purely for its own students, where, for example, the kitchen and dining facilities are physically separate from the study-bedrooms and may not always be accessible to the students, is probably an institution, rather than a dwelling-house. But on the other hand, cluster flats or houses in multiple occupation, that provide the facilities necessary for day-to-day private domestic existence (such as bedrooms with en-suite facilities and a shared or communal kitchen/diner and sitting room) are dwelling-houses. Such a flat or house would be a dwelling-house if occupied by a family, a group of friends or key workers, so the fact that it may be occupied by students is, in a sense, immaterial.