1Section 189 of FA 2004 (tax reliefs and exemptions in connection with registered pension schemes: meaning of relevant UK earnings) is amended as follows—
(a)in subsection (2) omit—
(i)paragraph (ba), and
(ii)paragraph (bb) (but not the “and” after it);
(b)omit subsections (5) to (6B).
2(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 “”)—
(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)”.
3(1)ITA 2007 is amended as follows.
(2)In section 117 (overview of Chapter 4 of Part 4) omit subsections (2) and (2A).
(3)Omit—
(a)section 127 (UK furnished holiday lettings business treated as trade),
(b)section 127ZA (EEA furnished holiday lettings business treated as trade), and
(c)the italic heading before those sections.
(4)In section 388 (loan to buy plant or machinery for partnership use)—
(a)in subsection (2)(a) omit “ordinary”;
(b)in subsection (4), for ““ordinary property business”” substitute ““property business””.
(5)In section 389 (eligibility requirements for interest on loans), in subsection (4) omit “ordinary”.
(6)In section 399A (property partnerships: restriction of relief for investment loan interest) omit subsection (9).
(7)In section 836 (jointly held property), in subsection (3) omit exceptions D and DA.
4The following provisions (which insert or amend provision relating to the commercial letting of furnished holiday accommodation) are repealed—
(a)in ITTOIA 2005—
(i)paragraph 196 of Schedule 1, and
(ii)paragraphs 74 and 75 of Schedule 2;
(b)in Schedule 1 to ITA 2007—
(i)paragraph 473(2)(a) and (b), and
(ii)paragraphs 508, 509 and 510;
(c)in FA 2011, Part 1 of Schedule 14;
(d)in FA 2016, section 73(5);
(e)in F(No.2)A 2017, paragraph 26 of Schedule 2.