Commentary on Sections Overview Overview Section 308: Furnished lettings
1250.This section brings the “letting” of furniture, when it is part and parcel of the letting of accommodation, within the property income charge. It is based on sections 15 and 65A of ICTA.
1251.Without this provision, rent paid for use of the furniture in furnished lettings would not be included in the property income charge because the “rent” for the furniture does not derive from land.
1252.The purpose ofsubsection (1)(b) is to make it clear that related revenue expenses such as the expenses of repair and insurance of the furniture are deductible in calculating the profits of the property business.
1253.Subsection (2) excludes income and expenses where the hiring of the furniture is not simply incidental to exploiting an interest in land.
1254.Subsection (4) refers to a “caravan and a houseboat”. There is a new Act-wide, uniform definition of “caravan”: see the commentary on section 875 and Change 148 in Annex 1.
1255.There is also a new Act-wide, uniform definition of “houseboat”: see the commentary on section 878(1) and Change 150 in Annex 1.