Plant & Machinery Allowances Relief
Plant and machinery for HMO’s & Multi-occupancy properties includes:-
heating and air-conditioning, wiring to fixed plant, switchgear, emergency lighting, fire alarm installations, sanitary fittings hot water installation, carpets and removable floor coverings, fittings and furniture firefighting equipment, mechanical door closers, security equipment, telecommunications installations, trade and information signs etc.
This list is by no means exhaustive but provides a guide to the plant & machinery most commonly found in these types of properties, although this is restricted by the 45/10 briefing.
In addition, expenditure incurred on certain other assets including fire safety, thermal insulation and building alterations incidental to the installation of plant and machinery may also be eligible.
The rate of relief varies from 100% in the year of purchase (AIA / FYA), to 10% (WDA).
Other allowances are available, but these are largely restricted for companies and are not largely applicable to HMO or multi-occupancy property owners.
Who Can Claim?
- You must be a UK Tax Payer (Either Income tax, or Corporation tax)
- You must use the assets in course of a trade.
- You must incur the capital expenditure.
- There must be ‘qualifying’ items of expenditure or ‘qualifying’ buildings.
- Properties held ‘in stock’ will not qualify
What Can Be Claimed?
Expenditure incurred on:-
• The original purchase of the property
• Any Refurbishment or alteration works to existing property
You can read the fine details of all the Capital Allowance schemes on the HMRC site.
