Part 3Property income

Chapter 5Profits of property businesses: other rules about receipts and deductions

F1Furnished accommodation: wear and tear allowance

308AWear and tear allowance election

(1)

Where—

(a)

a person (“P”) carries on a property business in a tax year which consists of or includes a furnished letting, and

(b)

a dwelling-house that is subject to the letting is eligible in relation to P at any time in the year,

P may make an election (a “wear and tear allowance election”) in relation to the business for the year.

(2)

A wear and tear allowance election for a tax year must be made on or before the first anniversary of the normal self-assessment filing date for the tax year.

(3)

In this section and sections 308B and 308C, “furnished letting” means a furnished letting as defined in section 308 but does not include a commercial letting of furnished holiday accommodation (within the meaning of Chapter 6).

(4)

See—

section 308B for the meaning of “eligible” in relation to a dwelling-house, and

section 308C for the effect of a wear and tear allowance election.