Part 3Property income

Chapter 6Commercial letting of furnished holiday accommodation

Introduction

322Introduction

(1)

This Chapter explains for the purposes of this Part what is meant by the commercial letting of furnished holiday accommodation (see sections 323 to 326).

(2)

It matters whether a UK property business consists of or includes the commercial letting of furnished holiday accommodation for the purposes of—

F1(za)

section 272B(4) (exception from restriction on deductibility of finance costs),

(a)

section 312 (deduction for expenditure on energy-saving items: see section 313(3)),

(b)

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d)

certain provisions of TCGA 1992 (see section 241 of that Act),

(e)

CAA 2001 (see, for example, sections 248 and 249 of that Act),

F3(f)

section 189(2)(ba) of FA 2004 (meaning of “relevant UK earnings” for pension purposes),

(g)

Part 4 of ITA 2007 (loss relief: see section 127 of that Act),

F4(ga)

section 399A(9) of ITA 2007 (exception from restriction on deductibility of interest on loans to invest in partnerships), and

(h)

section 836(3) of ITA 2007 (jointly held property: see exception D).

F5(2A)

It matters whether an overseas property business consists of or includes the commercial letting of furnished holiday accommodation in one or more EEA states for the purposes of—

F6(za)

section 272B(4) (exception from restriction on deductibility of finance costs),

(a)

section 312 (deduction for expenditure on energy-saving items: see section 313(3)),

(b)

certain provisions of TCGA 1992 (see section 241A of that Act),

(c)

CAA 2001 (see, for example, sections 250 and 250A of that Act),

(d)

section 189(2)(bb) of FA 2004 (meaning of “relevant UK earnings” for pension purposes),

(e)

Part 4 of ITA 2007 (loss relief: see section 127ZA of that Act),

F7(ea)

section 399A(9) of ITA 2007 (exception from restriction on deductibility of interest on loans to invest in partnerships), and

(f)

section 836(3) of ITA 2007 (jointly held property: see exception DA).

(3)

This Chapter also supplements F8 the provisions mentioned in subsection (2) by providing in certain circumstances for the profits of the furnished holiday lettings part of a UK property business to be calculated separately (see sections 327 and 328).

F9(4)

This Chapter also supplements the provisions mentioned in subsection (2A) by providing in certain circumstances for the profits of the EEA furnished holiday lettings part of an overseas property business to be calculated separately (see sections 328A and 328B).