(1)If a UK property business consists of both—
(a)the commercial letting of furnished holiday accommodation (“the furnished holiday lettings part”), and
(b)other businesses or transactions (“the other part”),
this section requires separate calculations to be made of the profits of the furnished holiday lettings part and the other part.
(2)The calculations must be made if—
(a)section 248 or 249 of CAA 2001 (giving effect to allowances and charges) applies to the furnished holiday lettings part or the other part, or
(b)any provision of [F2Part 4 of ITA 2007] (loss relief) applies in relation to a loss made in either of those parts,F3...
F3(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)If there is a letting of accommodation only part of which is holiday accommodation, such apportionments are to be made for the purposes of this section as are just and reasonable.
Textual Amendments
F1Words in s. 327 heading substituted (with effect in accordance with Sch. 14 para. 4 of the amending Act) by Finance Act 2011 (c. 11), Sch. 14 para. 2(6)
F2Words in s. 327(2)(b) substituted (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 1027, 1034, Sch. 1 para. 509 (with transitional provisions and savings in Sch. 2)
F3S. 327(2)(c) and word omitted (with effect in accordance with s. 74(2) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 74(1)(b)