The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
For income tax purposes, rental profits from land and buildings are categorised as either:
England, Wales, Scotland and Northern Ireland make up the countries of the UK. The Isle of Man and the Channel Islands are treated as overseas for the purposes of the legislation.
This means that UK rental profits are pooled together and reported as one business, and overseas rental profits are pooled together and reported as one business.
The exceptions to this are:
UK property businesses are considered further in the Property income guidance note.
The date of cessation of a property business is a question of fact.
As a UK property business is a pool of all the taxpayer’s income-generating property in the UK, the date of cessation of a property business is usually when the final UK property is sold.
So if, for example, the taxpayer owned five UK properties which were rented out, even if four of these properties were sold, the UK property business would continue until the sale of the final property.
Alternatively, the property business could cease when all the properties are used for non-business purposes, for example the business consists of one property and, after the tenant leaves, the owner moves into the
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