ACCA Advanced Taxation (ATX) Practice Exam

What is the minimum duration a house must be available in the UK during the tax year for it to be considered accommodation?

1. 30 consecutive days

2. 60 consecutive days

3. 91 consecutive days

4. 120 consecutive days

The correct answer is: 91 consecutive days

For a house to be considered as accommodation for tax purposes in the UK, it must generally be available for a minimum period within the tax year. The correct duration is 91 consecutive days. This guideline is significant because it helps establish the property’s availability for use, which can impact various tax reliefs and exemptions related to property ownership and renting. When the property is available for at least 91 consecutive days, it meets the threshold that differentiates between personal use and business use, affecting how income generated from the property may be treated for tax purposes. This standard is particularly relevant in discussions surrounding property-related tax implications such as capital gains tax, rental income, and certain reliefs under specific conditions. Other durations mentioned, like 30, 60, or 120 consecutive days, do not meet the criteria established in tax regulations for treating a property as available accommodation, thus making them inaccurate options in this context. Understanding these thresholds is crucial for individuals and businesses navigating property taxes in the UK.