Commentary

B6.201 Introduction to property businesses

Business tax
Business tax | Commentary

B6.201 Introduction to property businesses

Business tax | Commentary

Part B6     Property Income and Taxes

Contents of Part B6

B6.2     Property businesses

B6.3     Lease premiums etc

B6.4     Furnished holiday lettings

B6.5     Rent receivable from certain concerns

B6.6     Rent-a-room relief

B6.7     Annual tax on enveloped dwellings

Division B6.2     Property businesses

For updates affecting this Division please see Part B0 Updates

Definition of a property business

B6.201 Introduction to property businesses

All UK rental activities are considered to form a single 'UK property business'1. Treating all such activities as one single business means that it is not necessary for taxpayers to calculate their profits and losses in respect of individual properties; nor is it necessary for common costs to be apportioned across a number of different properties. Both income tax and corporation tax are concerned only with the aggregate result of the taxpayer's rental activities in the UK.

Similarly, all income arising in respect of land outside the UK is treated as part of a single overseas property business2.

Within the scope of a property business (defined as covering both UK and overseas property businesses)3 is any activity by the taxpayer 'generating income from land'. This is in turn defined as 'exploiting an estate, interest or right in or over land as a source of rents or other receipts'4. Rent is defined so as to include any payments by a tenant under a

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