Income and Corporation Taxes Act 1988

504 Supplementary provisions. U.K.

(1) M1 This section has effect for the purposes of section 503.

(2) A letting—

(a) is a commercial letting if it is let on a commercial basis and with a view to the realisation of profits; and

(b) is of furnished accommodation if the tenant is entitled to the use of furniture.

(3) Accommodation shall not be treated as holiday accommodation for the purposes of this section unless—

(a) it is available for commercial letting to the public generally as holiday accommodation for periods which amount, in the aggregate, to not less than 140 days;

(b) the periods for which it is so let amount in the aggregate to at least 70 days; and

(c) for a period comprising at least seven months (which need not be continuous but includes any months in which it is let as mentioned in paragraph (b) above) it is not normally in the same occupation for a continuous period exceeding 31 days.

(4) F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) Any question whether accommodation let by a company is at any time in an accounting period holiday accommodation shall be determined—

(a) if the accommodation was not let by it as furnished accommodation in the period of 12 months immediately preceding the accounting period but is so let in the period of 12 months immediately following the accounting period, by reference to the 12 months beginning with the date in the accounting period on which it first so let it;

(b) if the accommodation was let by it as furnished accommodation in the period of 12 months immediately preceding the accounting period but is not so let by it in the period of 12 months immediately following the accounting period, by reference to the 12 months ending with the date in the accounting period on which it ceased so to let it;

(c) in any other case, by reference to the period of 12 months ending with the last day of the accounting period.

(6) Where, in any F2 . . . accounting period, a [F3 company] lets furnished accommodation which is treated as holiday accommodation for the purposes of this section in that F4 . . . period (“the qualifying accommodation”), [F5 the company] may make a claim under this subsection, within [F6 the time specified in subsection (6A) below], for averaging treatment to apply for that F4 . . . period to that and any other accommodation specified in the claim which was let by [F7 the company] as furnished accommodation during that F4 . . . period and would fall to be treated as holiday accommodation in that F4 . . . period if subsection (3)(b) above were satisfied in relation to it.

[F8 (6A) The time mentioned in subsection (6) [F9 above is the period of two years beginning at the end of the accounting period in which the accommodation was let.]]

(7) Where a claim is made under subsection (6) above in respect of any F10 . . . accounting period, any such other accommodation shall be treated as being holiday accommodation in that F11 . . . period if the number of days for which the qualifying accommodation and any other such accommodation was let by the claimant as mentioned in subsection (3)(a) above during the F11 . . . period amounts on average to at least 70.

(8) Qualifying accommodation may not be specified in more than one claim in respect of any one F12 . . . accounting period.

(9) For the purposes of this section [F13 a company] lets accommodation if [F14 it] permits another person to occupy it, whether or not in pursuance of a lease; and “letting” and “tenant” shall be construed accordingly.

Textual Amendments

F1 S. 504(4) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(2), Sch. 3 (with Sch. 2)

F2 Words in s. 504(6) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(3)(a), Sch. 3 (with Sch. 2)

F3 Word in s. 504(6) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(3)(b) (with Sch. 2)

F4 Words in s. 504(6) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(3)(c), Sch. 3 (with Sch. 2)

F5 Words in s. 504(6) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(3)(d) (with Sch. 2)

F6 Words in s. 504(6) substituted (with effect in accordance with s. 135(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 21 para. 14(2)

F7 Words in s. 504(6) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(3)(e) (with Sch. 2)

F8 S. 504(6A) inserted (with effect in accordance with s. 135(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 21 para. 14(3)

F9 Words in s. 504(6A) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(4) (with Sch. 2)

F10 Words in s. 504(7) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(5)(a), Sch. 3 (with Sch. 2)

F11 Words in s. 504(7) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(5)(b), Sch. 3 (with Sch. 2)

F12 Words in s. 504(8) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(6), Sch. 3 (with Sch. 2)

F13 Words in s. 504(9) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(7)(a) (with Sch. 2)

F14 Word in s. 504(9) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 196(7)(b) (with Sch. 2)

Modifications etc. (not altering text)

C1 S. 504 applied (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 241(2), 289 (with ss. 60, 101(1), 171, 201(3))

Marginal Citations

M1 Source—1984 s.50(2)-(9)