Section 35 | Expenditure on plant or machinery for use in dwelling-house not qualifying expenditure in certain cases

From legislation.gov.uk

1 May 2026

(1)This section applies if a person is carrying on a qualifying activity consisting of—

(a)a UK property business,^F1F2F3

(b)an ... overseas property business, or^F4F5

(c)special leasing of plant or machinery.

(2)The person’s expenditure is not qualifying expenditure if it is incurred in providing plant or machinery for use in a dwelling-house.

(3)If plant or machinery is provided partly for use in a dwelling-house and partly for other purposes, such apportionment of the expenditure incurred in providing that plant or machinery is to be made for the purposes of subsection (2) as is just and reasonable.

Notes

F1
Word in s. 35(1)(a) substituted (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by , Sch. 5 paras. 8(7)(a), 12(3) (with Sch. 5 paras. 15, 18, 19)
F2
Word in inserted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by , Sch. 14 para. 12(9)(a)
F3
Word in substituted (with effect in accordance with s. 883(1) of the amending Act) by , , Sch. 1 para. 533 (with )
F4
Word in s. 35(1)(b) omitted (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by virtue of , Sch. 5 paras. 8(7)(b), 12(3) (with Sch. 5 paras. 15, 18, 19)
F5
Words in substituted (with effect in accordance with Sch. 14 para. 13 of the amending Act) by , Sch. 14 para. 12(9)(b)