PG电子

Throughout this manual, all legislative references are to (鈥淭CGA92鈥�) unless otherwise stated.

Sections 241 and 241A

The special treatment of furnished holiday lettings (FHL) for tax purposes no longer applies from 6 April 2025 (from 1 April 2025 for Corporation Tax purposes).听 The consequences of the abolition for capital gains purposes are explained at CG73505.

previously provided that the definition of 鈥榝urnished holiday lettings鈥� in (for individuals and partnerships) and (for companies), see听PIM4100, also applied for Capital Gains Tax (CGT) and Corporation Tax on Chargeable Gains purposes.听 This applied to properties in the UK and was extended to properties situated within the European Economic Area (EEA) from April 2011 by section 241A.

The guidance at听PIM4100听should be referred to if you need to determine whether a property qualified as furnished holiday lettings for the purpose of any of the reliefs mentioned below.听 See also CG73505 for the transitional consequences of the ending of FHL treatment and for an explanation of the rule preventing certain forestalling arrangements.

Reliefs

Former sections 241(3) & (3A) and听241A(4), (5) & (11)

For periods before 6 April 2025 for CGT and before 1 April 2025 for Corporation Tax the following treatment applied for the purposes of the reliefs listed below

路听听听听听听 any UK property business which consists of, or so far as it consists of, commercial letting of furnished holiday accommodation was treated as a trade.

路听听听听听听 any overseas property business which consists of, or so far as it consists of, the commercial letting of furnished holiday accommodation in one or more EEA states was treated as a trade.

路听听听听听听 all such furnished holiday lettings undertaken by a particular person or partnership was treated as a single trade.

The reliefs to which the above treatment applied are

1.听听听听 Roll-over relief under , see听CG60250C, and in particular CG60281.

2.听听听听 Business asset disposal relief under , see听CG63950P, and in particular听CG63965.

3.听听听听 Gifts hold-over relief under , see听CG66880P.

4.听听听听 Relief for loans to traders under , see听CG65930P.

5.听听听听 Substantial shareholdings exemption under , see听CG53000P听and in particular听CG53007.

An 鈥榦verseas property business鈥� or 鈥楿K property business鈥� takes the meaning as defined in 听or 鈥�).

Trade purposes throughout chargeable period

Sections 241 (4) and听241A (6)

The definition of furnished holiday lettings in (or the equivalent) can be satisfied even if the property was only actually let as holiday accommodation during part of the chargeable period in question. If the property satisfied the requirements of ITTOIA 2005 (or the CTA 2009 equivalent), it was treated as being used and used only for trade purposes throughout the chargeable period in question, subject to the following exception.

Sections 241(5) and section 241A(7)

The exception to the rule above is that the property was not to be treated as used for trade purposes at any particular time, if

路听听听听听听 it was not commercially let at that time, and

路听听听听听听 it was not available to be commercially let at that time.

Any periods during which the property was not commercially let, and was not available to be so let, solely due to the carrying out of any repair or construction work on the property, were to be treated as periods of trade usage.

Example

Laura acquired a cottage in April 2006. She immediately furnished the cottage and made it available for holiday letting.

During the period from April 2006 to October 2008, the cottage was constantly available for holiday letting and was actually let for sufficient periods to satisfy the requirements of .

In October 2008, the property was damaged in a storm. Laura immediately put in hand the necessary repair work which was completed in April 2009. However, she decided not to let the cottage between April 2009 and April 2011.

The lettings recommenced in April 2011 and continued, satisfying the requirements of , until the cottage was sold in April 2024.

The periods of qualifying use, treated as trading for the purpose of the reliefs listed above, are as follows;

路听听听听听听 April 2006-October 2008 (actually let);

路听听听听听听 October 2008-April 2009 (undergoing repairs);

路听听听听听听 April 2011-April 2024 (actually let).

The only period of non-qualifying use was between April 2009 and April 2011.

Property only partly used as Furnished Holiday Lettings, sections 241(7) and 241A(9)

If only part of a property was let as furnished holiday lettings, an apportionment between the part so used and the remainder should be made on a just and reasonable basis. In particular, the approach taken for the purposes of , see听CG74150P, should be followed.

Private residence relief, sections 241(6) and 241(8)

Where a property which

路听听听听听听 has been used for furnished holiday lettings, and

路听听听听听听 whose acquisition cost has been reduced as a result of roll-over relief under or

qualifies for private residence relief (see听CG64200C) a special rule applies, see听CG65090.