Capital Allowances Act 2001 section 16

Ordinary UK property businesses

Section 16 defines what constitutes an "ordinary UK property business" for the purposes of capital allowances.

• An ordinary UK property business is a UK property business that excludes any furnished holiday lettings activity.
• The definition separates standard rental property income from furnished holiday lettings, which historically received different tax treatment.
• This distinction matters because different capital allowance rules may apply depending on which category a property business falls into.
• The section was amended by Finance Act 2025 to reflect updated terminology and the evolving treatment of furnished holiday lettings.