CA20025 - Plant and Machinery Allowances (PMA): introduction: furnished holiday lettings business

CAA01/S17

A ’furnished holiday lettings business’ is a qualifying activity for PMA. A furnished holiday lettings business is one that consists of the commercial letting of furnished holiday accommodation in the United Kingdom. It may be part of a larger ordinary property business. The term the ‘commercial letting of furnished holiday accommodation’ has the same meaning as in ITTOIA/S322 to S328 for income tax and CTA 2010 sections 265, 266, 268 (formerly ICTA88/S504) for corporation tax.

Where only part of an ordinary property business consists of furnished holiday lettings, the furnished holiday lettings are a separate qualifying activity. PMAs are calculated and given separately on the furnished holiday lettings business and the rest of the ordinary property business.