Part VII Other property, businesses, investments etc.

Leases

241F1UK furnished holiday lettings.

(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),

  • F9section 169S(1) (F10business asset disposal 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.