Commentary

B6.215 Supplementary rules for property businesses

Business tax
Business tax | Commentary

B6.215 Supplementary rules for property businesses

Business tax | Commentary

B6.215 Supplementary rules for property businesses

For the latest New Development, see ND.1295.

Income tax

ITTOIA 2005, Pt, 3 Ch 12 (ss 361–364) contains additional rules that supplement the provisions dealing with property businesses. Three are dealt with below.

Changes in the composition of trustees and PRs

First, it is provided that a change in the persons who are trustees of a trust or an individual's personal representatives does not amount to any trustee or personal representative starting (or ceasing) to carry on a property business1. In other words, the trusts or the personal representatives are treated as a single continuing body notwithstanding any change in their composition.

Companies coming into or leaving the charge to income tax

Secondly, non-resident companies can be within the charge to income tax on the profits of a UK property business up to 5 April 20202. However, should the company become UK-resident (because of a change in the location of the control and management of the company) it will cease to be subject to income tax and will instead be subject to corporation tax on the profits of its UK property business. For the purposes of income tax, the coming within the charge to income tax will represent the starting of a UK property business and the

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