Capital Allowances Act 2001 section 279

Qualifying hotels

Section 279 defines what constitutes a "qualifying hotel" for the purposes of industrial buildings allowances, setting out the conditions a hotel must satisfy regarding its permanence, opening period, size, and services offered.

• A qualifying hotel must be housed in a permanent building, be open for at least four months between April and October, have at least 10 letting bedrooms, and provide full guest services including breakfast, evening meal, bed-making and room cleaning.
• Whether a hotel meets the qualifying conditions during a chargeable period is assessed by reference to a 12-month reference period, which may start from the end of the chargeable period, the date the hotel was first used for trade, or the date it first had 10 or more letting bedrooms.
• Buildings used for the welfare of hotel workers count as part of the hotel, but any accommodation used as a private dwelling by an individual owner (or their family) during the open season is excluded from being treated as part of the hotel.
• A "letting bedroom" is a private bedroom available for letting to the general public and not normally occupied by the same guest for more than one month, and "building" for these purposes does not include a structure.