Part 4

Property income
Chapter 5

Profits of property businesses: other rules about receipts and deductions

Furnished accommodation: receipts and deductions

Furnished lettings
248
1
In calculating the profits of a property business which consists of or includes a furnished letting—
a
any sum payable for the use of furniture is brought into account as a receipt, and
b
a deduction is allowed for expenses of a revenue nature incurred in connection with the provision of furniture.
2
But subsection (1) does not apply to receipts or expenses brought into account in calculating the profits of a trade which consists of, or involves, making furniture available for use in premises.
3
A furnished letting is a lease or other arrangement under which—
a
a sum is payable in respect of the use of premises, and
b
the person entitled to the use of the premises is also entitled, in connection with that use, to the use of furniture.
4
In this section—
a
“premises” includes a caravan and a houseboat, and
b
“sum” includes the value of any consideration.
Words in s. 248(1)(b) inserted (with effect in accordance with s. 73(8)(9) of the amending Act) by Finance Act 2016 (c. 24), s. 73(6)