Capital Allowances Act 1990

86Qualifying dwelling-houses

(1)In this Part “qualifying dwelling-house” means, subject to subsections (2) to (4) below, a dwelling-house let on a tenancy which is for the time being an assured tenancy.

(2)A dwelling-house which has been a qualifying dwelling-house by virtue of subsection (1) above shall be regarded as a qualifying dwelling-house at any time when—

(a)it is for the time being subject to a regulated tenancy or a housing association tenancy; and

(b)the landlord under that tenancy either is an approved body or was an approved body but has ceased to be such for any reason.

(3)Notwithstanding that a dwelling-house is let as mentioned in subsection (1) or (2) above, it is not a qualifying dwelling-house for the purposes of this Part—

(a)unless the landlord is a company and either is for the time being entitled to the relevant interest in the dwelling-house or is the person who incurred the capital expenditure on the construction of the building in which the dwelling-house is comprised; or

(b)if the landlord is a housing association which is approved for the purposes of section 488 of the principal Act or is a self-build society within the meaning of the [1985 c. 69.] Housing Associations Act 1985; or

(c)if the landlord and the tenant are connected persons; or

(d)if the tenant is a director of a company which is or is connected with the landlord; or

(e)if the landlord is a close company and the tenant is, for the purposes of Part XI of the principal Act, a participator in that company or an associate of such a participator; or

(f)if the tenancy is entered into as part of an arrangement between the landlords (or owners) of different dwelling-houses under which one landlord takes a person as a tenant in circumstances where, if that person was the tenant of a dwelling-house let by the other landlord, that dwelling-house would not be a qualifying dwelling-house by virtue of any of paragraphs (c) to (e) above;

and section 839 of the principal Act applies for the purposes of this subsection.

(4)In this section “regulated tenancy” and “housing association tenancy” have the same meaning as in the [1977 c. 42.] Rent Act 1977.

(5)Subsection (3)(a) shall have effect—

(a)in relation to expenditure incurred before 5th May 1983 and expenditure incurred on or after that date pursuant to a contract entered into before that date, and

(b)in any case where a person other than a company became entitled to the relevant interest before that date, and such a person has not become so entitled on or after that date,

with the omission of the words “is a company and either”.