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HMRC internal manual

Capital Gains Manual

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Furnished holiday lettings: general

TCGA92/S241

TCGA92/S241 (2) provides that the definition of `furnished holiday lettings’ in ITTOIA 2005/S322 to S328 (for individuals and partnerships) and CTA 2009/S264 to S269 (for companies), see PIM4100+, also applies for Capital Gains Tax purposes. The guidance at PIM4100+ should be referred to if you need to determine whether a property qualifies as furnished holiday lettings for the purpose of any of the reliefs mentioned below.

Properties situated within the European Economic Area (EEA) were brought within the FHL regime from 6 April 2011 for individuals and partnerships and 1 April 2011 for companies. (EEA properties were included on a concessional non statutory basis for tax years 2009/10 and 2010/11).

TCGA92/S241 (3)

For the purposes of the reliefs listed below, furnished holiday lettings are treated as follows.

  • furnished holiday lettings, carried on a commercial basis, whose profits are chargeable under Case VI of Schedule D are treated as a trade.
  • All such furnished holiday lettings undertaken by a particular person or partnership are treated as a single trade.

The reliefs to which the above treatment applies are as follows.

  1. Roll-over relief under TCGA92/S152-TCGA92/S157, see CG60250+, and in particular CG61450+.
  2. Entrepreneurs’ relief under TCGA92/S164H, see CG63950+, and in particular CG63965.
  3. Gifts hold-over relief under TCGA92/S165, see CG66910+.
  4. Relief for loans to traders under TCGA92/S253, see CG65930+.
  5. Taper relief under Section 2A TCGA 1992 and Schedule A1 TCGA 1992, see CG17895+. Taper relief does not apply to disposals on or after 6 April 2008.