Income Tax (Trading and Other Income) Act 2005 section 308

Furnished lettings

Section 308 deals with how income and expenses relating to furniture provided as part of a property letting are treated for tax purposes within the property income rules.

• Any amount received for the use of furniture in a furnished letting must be included as taxable income of the property business
• Revenue expenses connected with providing the furniture, such as repairs and insurance, are allowable deductions against property business profits
• The section does not apply where the hiring out of furniture is itself a trade, rather than being incidental to a property letting
• The definition of premises extends beyond conventional buildings to include caravans and houseboats, and "sum" includes the value of any non-cash consideration