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.
This guidance note refers to a UK property business, but the rules apply equally to an overseas property business. Different rules apply to losses from furnished holiday let businesses, see the Furnished holiday lets guidance note.
Property business losses are calculated in the same way as property business profits.
From 2017/18 onwards, there are two possible bases that can be used to calculate property business profits and losses:
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