Commentary

B5.220 Treatment of rents

Business tax
Business tax | Commentary

B5.220 Treatment of rents

Business tax | Commentary

B5.220 Treatment of rents

In law, rents and receipts from land in the UK are chargeable to tax as property income even if the land forms part of the trading stock of a dealer in land1, and are therefore excluded from the dealer's trading profits. This means that some expenses may need to be apportioned between property income and trading income. However, rents and expenses in respect of letting surplus business accommodation, which would normally be assessed as property income, may be included as trading receipts and expenses if the following conditions are satisfied2:

  1.  

    (a)     the accommodation is temporarily surplus

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