UUÂãÁÄÖ±²¥

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
imgtext

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

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL
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.

Powered by
  • 19 Apr 2024 14:31

Home/ Tolley Tax Guidance/ Owner-Managed Businesses / Running a property business

Popular Articles

Personal Tax

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more Read more
Value Added Tax

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more Read more
Owner-Managed Businesses

Furnished holiday lets

Furnished holiday letsThis guidance note sets out the qualifying conditions for a property let to be treated as a furnished holiday let (FHL) for tax purposes and the subsequent tax implications.Whether or not a property qualifies as an FHL can make an important difference to the taxation

14 Jul 2020 11:46 | Produced by Tolley Read more Read more