Taxation of property income for companies

Produced by Tolley in association with of Crane Dale Tax

Owner-Managed Businesses

Guidance

This guidance note summarises the position where a company has an investment in property and is therefore subject to corporation tax on income from property held as a fixed asset. For details of the taxation of property income for individuals, see the Taxation of property income for individuals guidance note and for a comparison of the difference between holding a property as an investment or for trading purposes, see the Property investment or trading? guidance note.

Property receipts

For corporation tax purposes, rental profits from land and buildings are categorised and pooled as either:

•
a UK property business, or
•
an overseas property business, see the Overseas property businesses for companies guidance note
•
furnished holiday let (FHL) businesses prior to April 1 April 2025 are distinguished further into UK and EEA FHL businesses and these are calculated and reported separately. The furnished holiday let tax regime is being abolished from 1 April 2025 after which date property receipts from previous FHL properties are included within UK or overseas

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Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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