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Taxation of property income for individuals


Produced by Tolley in association with of Crane Dale Tax
Owner-Managed Businesses
Guidance
tag-icon Tax Returns

Taxation of property income for individuals


Produced by Tolley in association with of Crane Dale Tax
Owner-Managed Businesses
Guidance
tag-icon Tax Returns
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This guidance note summarises the position where the individual has an investment in a letting property as a sole trader or through a partnership and is therefore subject to income tax on property income. For details of the taxation of property income in companies, see the Taxation of property income for companies 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.

In terms of whether the property should be held individually, in partnership or in a company, the factors will be very similar to those for choosing a trading vehicle. This is considered in the Choosing the business vehicle guidance note.

For a client factsheet which summarises the key tax implications for an individual investing in a buy to let property see the Client factsheet ― investing in a buy to let property.

UK property business

For income tax purposes, rental profits from land and buildings are categorised as

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Rob Durrant-Walker
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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  • 19 Feb 2025 10:41

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