HMRC guidance on new tax allowances for DDA compliance

Last Updated: 21 Aug 2008

HM Revenue and Customs (HMRC) has issued new guidance as to the tax treatment of expenditure that hotel operators undertake in complying with the Disability Discrimination Act (DDA). This guidance reflects the changes that were introduced on 1 April 2008 on the treatment of DDA-related improvements made to properties.

While there are changes to the rates for Plant and Machinery Allowances (PMA) which are useful to most accommodation businesses, the tax relief on disability-related expenditure on the structure of buildings only applies to what the HMRC define as "qualifying hotels", ie those that:

• have a minimum of 10 letting rooms, where the rooms are serviced (ie not self catering)
• serve meals
• are open for at least four months between April and October.

Further guidance on these changes and on tax allowances against costs incurred in complying with the DDA is available from the HMRC website.

Further guidance on what constitutes a “qualifying hotel” is available at http://www.hmrc.gov.uk/manuals/camanual/CA32401.htm