Paragraph 2 ITTOIA 2005

United Kingdom

(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 “costs of a dwelling-related loan”)—

(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)

in subsection (8), for paragraph (a) substitute—

“(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)”.