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HMRC internal manual

Capital Allowances Manual

Plant and Machinery Allowances (PMA): introduction: furnished holiday lettings business


A ’furnished holiday lettings business’ is a qualifying activity for PMA. A furnished holiday lettings business is one that consists of the commercial letting of furnished holiday accommodation in the United Kingdom. It may be part of a larger ordinary property business. The term the ‘commercial letting of furnished holiday accommodation’ has the same meaning as in ITTOIA/S322 to S328 for income tax and CTA 2010 sections 265, 266, 268 (formerly ICTA88/S504) for corporation tax.

Where only part of an ordinary property business consists of furnished holiday lettings, the furnished holiday lettings are a separate qualifying activity. PMAs are calculated and given separately on the furnished holiday lettings business and the rest of the ordinary property business.

Detailed guidance about furnished holiday lets can be found at PIM4113.