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HMRC internal manual

Capital Gains Manual

Furnished holiday lettings: trade purposes throughout chargeable period

TCGA92/S241 (3) & (4)

The definition of furnished holiday lettings in ITTOIA 2005/S322 - S328 (or the CTA 2009 equivalent) can be satisfied even if the property is only actually let as holiday accommodation during part of the chargeable period in question. If the property satisfies the requirements of Sections 322 - 328 (or the CTA 2009 equivalent), it is treated as being used and used only for trade purposes throughout the chargeable period in question, TCGA92/S241 (4), subject to the following exception.

TCGA92/S241 (5)

The exception to the rule in CG73503 is that the property is not to be treated as used for trade purposes at any particular time, if

  • it is not commercially let at that time, and
  • it is not available to be commercially let at that time.

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


X 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 ITTOIA 2005/S322 - S328.

In October 2008, the property was damaged in a hurricane. X 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 ITTOIA 2005/S322 - S328, until the cottage was sold in April 2013.

The periods of qualifying use, treated as trading for the purpose of the reliefs listed in CG73500, are as follows;

  • April 2006-October 2008 (actually let);
  • October 2008-April 2009 (undergoing repairs);
  • April 2011-April 2013 (actually let).

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