First principles, capital allowances aren’t claimable on residential property (“a dwelling house”). But, there are some exceptions in terms of multi-occupancy residential property. For HMO (House in Multiple Occupation) residential properties, it’s my understanding that each bedroom needs to be ‘capable of full domestic occupation” (HMRC term seen in several HMRC Enquiry letters), and that this means washing & cooking facilities in each room. It then follows that each room is a “dwelling house”, and so capital allowances may be claimed on the communal (non-dwelling house) areas.
In practice, the above scenario is very rare i.e. most HMO-type properties are 4-6-bed properties with a shared kitchen & bathroom. As each bedroom does not have kitchen(ette) / shower / loo, it therefore follows that the whole property is a dwelling house, and so there are no capital allowances available at all.
(And, not forgetting the April 2014 change that capital allowances need to have been pooled to be claimed – which will itself mean that most capital allowances claims on HMO-type property won’t be allowed)
I would appreciate any other members views on this, and in particular any interactions on this matter with HMRC as part of an Enquiry.