Income Tax (Trading and Other Income) Act 2005 section 323

Meaning of "commercial letting of furnished holiday accommodation"

Section 323 defines what counts as a "commercial letting of furnished holiday accommodation" for the purposes of the special tax rules in this chapter.

• A letting must be carried out on a commercial basis with the intention of making a profit to qualify as "commercial".
• The accommodation must be furnished, meaning the occupier has the right to use furniture provided as part of the letting arrangement.
• The property must also meet the conditions for "qualifying holiday accommodation" as set out in sections 325 and 326.
• Following the Finance Act 2025 amendments, the furnished holiday lettings regime is being abolished, but this section continues to define the qualifying criteria for relevant transitional purposes.