PIM4115 - Furnished holiday lettings: CT cases

Summary

The guidance at PIM4100 onwards for furnished holiday lettings within Schedule A is applicable to CT cases with the modifications shown below.

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Qualifying tests

The furnished holiday lettings legislation that applies to companies is ICTA88/S503 and ICTA88/S504. The qualifying tests are set out in PIM4110. (The tests in PIM4112 only apply to IT cases.)

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Period to which tests are to be applied for CT

ICTA88/S504 (4) specifies the period to which the tests in ICTA88/S504 (3) must be applied in IT cases to determine whether a letting qualifies in any year of assessment - see PIM4110.

For CT cases, ICTA88/S504 (5) specifies that the tests be applied to the following periods:

  • for a normal continuing case, the 12 months ending with the last day of the accounting period,
  • at commencement, if the accommodation was not let furnished in the 12 month period preceding the accounting period, the 12 months beginning with the date in the accounting period on which it was first let,
  • on cessation, if the accommodation was let furnished in the previous accounting period, the 12 months ending with the date in the accounting period on which it ceased to be let.