Corporation Tax Act 2009 section 248

Furnished lettings

Section 248 deals with how income and expenses relating to furniture provided as part of a property letting are treated for corporation tax purposes.

• When a property business includes furnished lettings, any sums received for the use of furniture must be included as taxable receipts of the property business.
• Revenue expenses connected with providing the furniture, such as repair and insurance costs, are allowable deductions when calculating the profits of the property business.
• These rules do not apply where the furniture hire forms part of a separate trade of making furniture available for use in premises, rather than being incidental to a property letting.
• The definition of premises extends beyond conventional buildings to include caravans and houseboats, and sums include non-cash consideration.