473(1)Amend section 189 (relevant UK individual) as follows.U.K.
(2)In subsection (2)—
(a)omit the “and” immediately after paragraph (b),
(b)after paragraph (b) insert—
“(ba)income which is chargeable under Part 3 of ITTOIA 2005 and is immediately derived from the carrying on of a UK furnished holiday lettings business (whether individually or as a partner acting personally in a partnership), and”, and
(c)for paragraph (c) substitute—
“(c)income to which subsection (2A) applies.”
(3)After subsection (2) insert—
“(2A)This subsection applies to income if—
(a)it is patent income, and
(b)the individual, alone or jointly, devised the invention for which the patent in question was granted.”
(4)After subsection (4) insert—
“(5)“UK furnished holiday lettings business” means a UK property business so far as consisting of the commercial letting of furnished holiday accommodation (within the meaning of Chapter 6 of Part 3 of ITTOIA 2005).
(6)If there is a letting of accommodation only part of which is holiday accommodation, just and reasonable apportionments are to be made for the purpose of determining what is comprised in a UK furnished holiday lettings business.
(7)“Patent income” means—
(a)royalties or other sums paid in respect of the use of a patent charged to tax under section 579 of ITTOIA 2005,
(b)amounts on which tax is payable under section 587 or 593 of ITTOIA 2005, or
(c)amounts on which tax is payable under—
(i)section 472(5) of the Capital Allowances Act, or
(ii)paragraph 100 of Schedule 3 to that Act.”