Corporation Tax Act 2009 section 269

Capital allowances and loss relief: UK property business

Section 269 requires companies with a UK property business that includes furnished holiday lettings to calculate the profits of that part separately from the rest of the business, so that specific tax advantages available to qualifying holiday lettings can be properly applied.

• Where a UK property business includes both furnished holiday lettings and other property activities, the profits of each part must be calculated separately.
• Separate calculation is only required when specific capital allowances or loss relief provisions apply to the furnished holiday lettings part.
• If property is used partly for holiday lettings and partly for other purposes, reasonable apportionments of income and expenditure must be made between the two parts.
• The requirement ensures that tax reliefs specific to furnished holiday lettings — such as capital allowances and certain loss relief rules — are correctly applied without distorting the treatment of the wider property business.