This subtopic covers the direct tax treatment (ie corporation tax, income tax and capital gains tax treatment) of owning freehold or leasehold property, primarily in the UK. There are a number of relevant considerations, including:
whether the taxpayer is trading (ie dealing), or investing, in property
the nature of the taxpayer (eg an individual, company or unit trust)
the principles of computing income tax, corporation tax or capital gains tax (as appropriate) on rental income, and the proceeds of sale, from property
the extent to which non-UK residents owning UK property are subject to direct taxation in the UK, and
the application of the UK's anti-avoidance measures to property owners
Whether a taxpayer is investing or trading (ie dealing) in property is key to determining how they are taxed. This distinction is relevant in many circumstances, eg it will be significant for the owner of a property who is considering selling it, as well as for the purchaser of shares in a company that owns a property asset (to assess the company's potential future tax liabilities). ...
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