Section 248 — Corporation Tax Act 2009: Furnished lettings

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.