- Latest available (Revised)
- Original (As enacted)
Taxation of Chargeable Gains Act 1992, Section 241 is up to date with all changes known to be in force on or before 22 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the legislation in the affected provisions. Use the ‘more’ link to open the changes and effects relevant to the provision you are viewing.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
(1)The following provisions of this section shall have effect with respect to the treatment for the purposes of tax on chargeable gains of the commercial letting of furnished holiday accommodation in the United Kingdom.
[F2(2)For the purposes of this section as it applies to capital gains tax the “commercial letting of furnished holiday accommodation” has the same meaning as it has for the purposes of Chapter 6 of Part 3 of ITTOIA 2005.
For the purposes of this section as it applies to corporation tax in respect of chargeable gains the “commercial letting of furnished holiday accommodation” [F3has the same meaning as it has for the purposes of Chapter 6 of Part 4 of CTA 2009].]
(3)[F4Subject to subsections (4) to (8) below, for the purposes of the provisions mentioned in subsection (3A) below—]
[F5(a)any [F6UK property business F7... which consists of, or so far as it consists of, the commercial letting of furnished holiday accommodation] shall be treated as a trade, and]
(b)all such lettings made by a particular person or partnership or body of persons shall be treated as one trade.
[F8(3A)The provisions referred to in subsection (3) above are—
sections 152 to 157 (roll-over relief on replacement of business asset),
section 165 (gifts relief),
Section 253 (relief for loans to traders),
F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., and
Schedule 7AC (exemptions for disposals by companies with substantial shareholding).]
(4)Subject to subsection (5) below, for the purposes of the [F13provisions mentioned in subsection (3A)] above as they apply by virtue of this section, where in any chargeable period a person makes a commercial letting of furnished holiday accommodation [F14in the United Kingdom]—
(a)the accommodation shall be taken to be used in that period only for the purposes of the trade of making such lettings; and
(b)that trade shall be taken to be carried on throughout that period.
(5)Subsection (4) above does not apply to any part of a chargeable period during which the accommodation is neither let commercially nor available to be so let unless it is prevented from being so let or available by any works of construction or repair.
(6)Where—
(a)a gain to which section 222 applies accrues to any individual on the disposal of an asset; and
(b)by virtue of subsection (3) above the amount or value of the consideration for the acquisition of the asset is treated as reduced under section 152 or 153,
the gain to which section 222 applies shall be reduced by the amount of the reduction mentioned in paragraph (b) above.
(7)Where there is a letting of accommodation only part of which is holiday accommodation such apportionments shall be made for the purposes of this section as [F15are] just and reasonable.
(8)Where a person has been charged to tax in respect of chargeable gains otherwise than in accordance with the provisions of this section, such assessment, reduction or discharge of an assessment or, where a claim for repayment is made, such repayment, shall be made as may be necessary to give effect to those provisions.
Textual Amendments
F1Words in s. 241 heading substituted (with effect in accordance with Sch. 14 para. 15 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 14(2)(a)
F2S. 241(2) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 441(2) (with Sch. 2)
F3Words in s. 241(2) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 380(2) (with Sch. 2 Pts. 1, 2)
F4Words in s. 241(3) substituted (24.7.2002) by Finance Act 2002 (c. 23), Sch. 8 para. 3(2)
F5S. 241(3)(a) substituted (with effect in accordance with s. 38 of the amending Act) by Finance Act 1998 (c. 36), Sch. 5 para. 62 (with Sch. 5 para. 73)
F6Words in s. 241(3)(a) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 441(3) (with Sch. 2)
F7Words in s. 241(3)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 380(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F8S. 241(3A) inserted (24.7.2002) by Finance Act 2002 (c. 23), Sch. 8 para. 3(3)
F9Words in s. 241(3A) inserted (with effect in accordance with Sch. 3 para. 5 of the amending Act) by Finance Act 2008 (c. 9), Sch. 3 para. 3
F10Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))
F11Words in s. 241(3A) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 37
F12Words in s. 241(3A) omitted (with effect in accordance with Sch. 14 para. 15 of the amending Act) by virtue of Finance Act 2011 (c. 11), Sch. 14 para. 14(2)(b)
F13Words in s. 241(4) substituted (24.7.2002) by Finance Act 2002 (c. 23), Sch. 8 para. 3(4)
F14Words in s. 241(4) inserted (with effect in accordance with Sch. 14 para. 15 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 14(2)(c)
F15Word in s. 241(7) substituted (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 62
Modifications etc. (not altering text)
C1S. 241(3) modified (with effect in accordance with s. 39(4)(a)(5) of the amending Act) by Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 36
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: