Capital Allowances Act 1990 (repealed)

86 Qualifying dwelling-houses. U.K.

(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 M1 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 M2 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".

Marginal Citations

M1 1985 c. 69.

M2 1977 c. 42.