Capital Allowances Act 2001 section 249

UK furnished holiday lettings businesses

Section 249 explains how plant and machinery capital allowances and charges are given effect for UK furnished holiday lettings businesses.

• Where a person is entitled to a plant and machinery allowance or liable for a charge in respect of a UK furnished holiday lettings business, the amount must be included in the profit calculation for that business.
• An allowance is treated as an expense of the business, reducing its taxable profits.
• A charge is treated as a receipt of the business, increasing its taxable profits.
• For the purposes of loss relief and related provisions, the letting of furnished holiday accommodation is treated as if it were a trade.