Capital Allowances Act 2001 section 17

UK furnished holiday lettings businesses

Section 17 defines what constitutes a UK furnished holiday lettings business for the purposes of capital allowances and explains how such lettings are treated as a single qualifying activity.

• A furnished holiday lettings business is a UK property business to the extent it involves the commercial letting of furnished holiday accommodation in the United Kingdom.
• All commercial lettings of furnished holiday accommodation by the same person, partnership, or body of persons are treated as a single qualifying activity for capital allowances purposes.
• The term "commercial letting of furnished holiday accommodation" takes its meaning from the income tax and corporation tax rules.
• Where a letting includes both holiday and non-holiday accommodation, a just and reasonable apportionment must be made.