Commentary on Sections Overview Overview Section 248: Furnished lettings
894.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 section 15 of ICTA. The corresponding rule for income tax is in section 308 of ITTOIA.
895.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.
896.The purpose of subsection (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.
897.Subsection (2) excludes income and expenses where the hiring of the furniture is not simply incidental to exploiting an interest in land.
898.Subsection (4)(a) refers to a “caravan and a houseboat”. There is a Act-wide definition of “caravan” in section 1314: see the commentary on section 1314 and Change 96 in Annex 1. “Houseboat” is defined in section 1319 (other definitions), the corporation tax equivalent of section 878 of ITTOIA.