Property income—the income tax charge
Property income—the income tax charge

The following Tax practice note provides comprehensive and up to date legal information covering:

  • Property income—the income tax charge
  • What is the basis of the income tax charge on property income?
  • Calculation principles for property income
  • Arising basis and apportionment to tax year
  • What is a property business?
  • The meaning of generating income from land
  • Specific inclusions within a property business
  • Specific exclusions from a property business
  • Practical implications—property activity falling outside of a property business
  • Territorial scope of income tax charge on property income
  • More...

Property income—the income tax charge

The charge to UK income tax applies to the profits of both a UK and overseas property business.

A property business is one which generates income from land and includes every transaction entered into for that purpose.

A UK resident person (ie an individual or trustee) is subject to income tax on the profits of both their UK and overseas property businesses.

A non-UK resident person (ie an individual, trustee or, prior to 6 April 2020, a non-UK resident company investing in property) is only subject to income tax on the profits of their UK property business and not their overseas property business.

The normal deadline for all income tax payers filing their self-assessment tax returns electronically (including in respect of any property income) is 31 January following the end of the relevant tax year. For those filing on paper (ie non-electronically), the deadline is 31 October following the end of the relevant tax year.

Specific rules apply to the commercial letting of furnished holiday accommodation. These rules historically provided significantly more generous loss (and other) reliefs for furnished holiday letting than for other property businesses. However, this more generous loss relief has been restricted since 6 April 2011. The detail of these rules is outside the scope of this Practice Note.

What is the basis of the income tax charge on property income?

The charge to

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