Income Tax Act 2007 (c. 3)

Part 4 U.K. Loss relief

Chapter 4 U.K. Losses from property businesses

Furnished holiday accommodation U.K.

127 UK furnished holiday lettings business treated as trade U.K.

(1) This section applies if, in a tax year, a person carries on a UK furnished holiday lettings business.

(2) “UK furnished holiday lettings business” means a UK property business which consists of, or so far as it includes, the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005).

(3) For the purposes of this Part (but as modified below) the person is treated instead as carrying on in the tax year a single trade—

(a) which consists of every commercial letting of furnished holiday accommodation comprised in the person's UK furnished holiday lettings business, and

(b) the profits of which are chargeable to income tax.

[F1 (3A) Chapter 2 applies as if sections 64 to 82 and 89 to 95 were omitted.]

(7) If there is a letting of accommodation only part of which is furnished holiday accommodation, just and reasonable apportionments are to be made for the purpose of determining what is comprised in the trade treated as carried on.

Textual Amendments

F1 S. 127(3A) substituted (19.7.2011) for s. 127(4)-(6) (with effect in accordance with Sch. 14 para. 4 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 3(3)

Modifications etc. (not altering text)

C1 S. 127(1)-(3) modified (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 2(5)

[F2 127ZA EEA furnished holiday lettings business treated as trade U.K.

(1) This section applies if, in a tax year, a person carries on an EEA furnished holiday lettings business.

(2) “EEA furnished holiday lettings business” means an overseas property business which consists of, or so far as it includes, the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005) in one or more EEA states.

(3) For the purposes of this Part (but as modified below) the person is treated instead as carrying on in the tax year a single trade—

(a) which consists of every commercial letting of furnished holiday accommodation comprised in the person's EEA furnished holiday lettings business, and

(b) the profits of which are chargeable to income tax.

(4) Chapter 2 applies as if sections 64 to 82 and 89 to 95 were omitted.

(5) If there is a letting of accommodation only part of which is furnished holiday accommodation, just and reasonable apportionments are to be made for the purpose of determining what is comprised in the trade treated as carried on.]

Textual Amendments

F2 S. 127ZA inserted (19.7.2011) (with effect in accordance with Sch. 14 para. 4 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 3(4)