Why was section 308B introduced in 2011?

Section 308B was introduced by the Enactment of Extra-Statutory Concessions Order 2011 (S.I. 2011/1037) to give statutory effect to an existing concession regarding eligible dwelling-houses. This was part of a broader government initiative to convert long-standing extra-statutory concessions into formal legislation on a proper legal footing.

When was section 308B repealed and what was the effect?

Finance Act 2016, section 74(1)(a), repealed sections 308A to 308C entirely from the 2016–17 tax year onwards. This means from 6 April 2016, these provisions have no application. Taxpayers who relied on these rules in earlier years cannot apply them for any period from that date forward.

Can a landlord still rely on section 308B for current tax years?

No. Since Finance Act 2016 repealed sections 308A to 308C from the 2016–17 tax year, landlords must compute their property income for 2016–17 and all later years without reference to these sections. They must instead apply the standard property income rules in force for the relevant tax year.

Income Tax (Trading and Other Income) Act 2005 section 308B

Q: What did section 308B of ITTOIA 2005 define?

Section 308B of the Income Tax (Trading and Other Income) Act 2005 defined when a dwelling-house qualified as 'eligible' for the purposes of the furnished holiday lettings income exemption provisions found in sections 308A and 308C. It set out the conditions under which certain property income could benefit from favourable tax treatment.

Meaning of "eligible" in relation to a dwelling-house

Section 308B defined what made a dwelling-house "eligible" for the purposes of the furnished holiday lettings income exemption provisions, but this section has been removed from the legislation.

Section 308B was introduced by the Enactment of Extra-Statutory Concessions Order 2011 to give statutory effect to an existing concession regarding eligible dwelling-houses.
The section formed part of a group of provisions (sections 308A to 308C) that together set out conditions under which certain property income could benefit from favourable treatment.
Finance Act 2016, section 74(1)(a), removed sections 308A to 308C entirely from the legislation.
The removal took effect from the 2016–17 tax year onwards, meaning these provisions have no application for that year or any subsequent tax year.

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