Taxation of Chargeable Gains Act 1992 section 241

UK furnished holiday lettings

Section 241 sets out how capital gains tax applies to the commercial letting of furnished holiday accommodation in the United Kingdom, treating qualifying lettings as a trade for the purposes of several important CGT reliefs.

• Furnished holiday lettings that meet the statutory definitions in ITTOIA 2005 or CTA 2009 are treated as a trade for CGT purposes, with all such lettings by the same person or partnership treated as a single trade.
• This trade treatment gives access to roll-over relief, gifts hold-over relief, entrepreneurs' relief, and relief for loans to traders.
• The property is treated as used for trade purposes throughout the chargeable period, except for any time when it is neither commercially let nor available for letting (unless unavailability is solely due to repair or construction work).
• Where roll-over relief has previously reduced the acquisition cost and the property later qualifies for private residence relief, the private residence relief is restricted to the part of the gain exceeding the amount previously rolled over.