Income Tax (Trading and Other Income) Act 2005 section 324

Meaning of "relevant period" in sections 325 and 326

Section 324 defines the "relevant period" used to test whether furnished holiday letting accommodation meets the qualifying conditions in sections 325 and 326.

• Where the property was not let as furnished accommodation in the previous tax year, the relevant period is the 12 months starting from the first day it is so let in the current tax year.
• Where the property was let as furnished accommodation in the previous tax year but will not be in the following tax year, the relevant period is the 12 months ending on the last day it is so let in the current tax year.
• In all other cases — that is, where there is an ongoing, established letting — the relevant period is simply the current tax year.
• For non-resident companies liable to income tax on furnished holiday accommodation, the relevant period is determined by reference to the tax year rather than an accounting period.