Taxation of Chargeable Gains Act 1992 section 241A

EEA furnished holiday lettings

Section 241A provides that furnished holiday lettings in EEA states (other than the UK) are treated as a single trade for the purposes of capital gains roll-over relief and certain other reliefs.

• All commercial furnished holiday lettings in EEA states outside the UK are deemed to be a single trade, separate from UK furnished holiday lettings, for capital gains purposes.
• Roll-over relief, gifts relief, business asset disposal relief, relief for loans to traders, and the substantial shareholdings exemption all apply to this deemed trade as they would to any other trade.
• Gains on UK furnished holiday lettings can be rolled over against acquisitions of EEA furnished holiday lettings, and vice versa, provided the two deemed trades are carried on at the same time or successively.
• Where only part of a property qualifies as holiday accommodation, or where the property is not available for commercial letting during part of the period, just and reasonable apportionments must be made.

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