Commentary on Sections Overview Overview Section 324: Meaning of “relevant period” in sections 325 and 326
1334.This section defines the period during which certain conditions need to be satisfied in order to benefit from the special tax treatment. It is based on section 504(4) of ICTA.
1335.Subsection (1) introduces the concept of “the relevant period”.
1336.Subsection (2) gives the rule for identifying the relevant period for the tax year in which the letting (as furnished accommodation) begins.
1337.Subsection (3) gives the rule for identifying the relevant period for the tax year in which the letting (as furnished accommodation) ends.
1338.Subsection (4) gives the general rule and identifies the relevant period as the tax year for the case where there is established and continuing letting. It follows the source legislation (in section 504(4)(c) of ICTA) by putting the general rule covering what is likely to be the most common case, last. This is because a person still needs to read the first two rules to know whether he or she falls within the general rule.
1339.Subsection (4) defines the “relevant period” by reference to the tax year for non-resident companies liable to income tax in respect of furnished holiday accommodation. See Change 75 in Annex 1.