In most cases, the statutory restrictions for dwelling-houses mean that capital allowances are restricted or denied altogether for non-commercial properties. Particular care is needed with houses of multiple occupation (HMOs), where subtle factual distinctions may lead to completely different tax outcomes.
The key is to identify the extent of the dwelling-house. For HMOs, this will often be the entire property, in which case no allowances will be due. In a few cases, however, it is possible that there will be several HMOs within a single building, in which case there may still be shared areas that are within the property but that do not form part of any of the HMO areas as such, and a limited claim may be possible.
As ever, the only route to a secure claim is to understand the nuances of the legislation and associated guidance and case law.
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