Legislation – Finance Act 2025
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Schedule 5Furnished holiday lettings
Part 1Amendments relating to income tax
ITTOIA 2005
2
(1)
ITTOIA 2005 is amended as follows.
(2)
In section 270 (charge on profits of property businesses), in subsection (5)—
(a)
in the definition of “CAA allowances” omit “or 250A”;
(b)
in the definition of “CAA charges”, for “either of those sections” substitute “that section”
.
(3)
In section 272B (meaning of “”)—
(a)
in subsection (2) for “subsections (3) and (4)” substitute “subsection (3)”
;
(b)
omit subsection (4).
(4)
In section 307B (cash basis: capital expenditure)—
(a)
in subsections (6) and (7), omit “ordinary”;
(b)
“(a)
“residential property” means land consisting of a dwelling-house or part of a dwelling-house in relation to which a UK property business or an overseas property business is carried on in the tax year, and”;
(c)
omit subsections (9) and (19).
(5)
In section 307E (cash basis: capital receipts)—
(a)
in subsection (20)(a) for “sections 248 to 250A” substitute “sections 248 and 250”
;
(b)
in subsection (22)(a), for “section 15(1)(b) to (da)” substitute “section 15(1)(b) or (d)”
.
(6)
In section 311A (replacement domestic items relief)—
(a)
in subsection (6), for “subsections (7) and (8)” substitute “subsection (8)”
;
(b)
omit subsection (7).
(7)
In section 313 (restrictions on relief), omit subsection (3).
(8)
Omit Chapter 6 of Part 3 (which defines “the commercial letting of furnished holiday accommodation”).
(9)
In section 334C (unrelieved qualifying expenditure)—
(a)
in subsection (1)(b), for “a relevant property business activity” substitute “the property business”
;
(b)
in subsection (3), for “each relevant property business activity” substitute “the property business”
;
(c)
in subsection (6), omit the definition of “relevant property business activity”.
(10)
In Part 2 of Schedule 4 (index of defined expressions), omit the entry for “commercial letting of furnished holiday accommodation (for purposes of Chapter 6 of Part 3)”.