Cessation of a property business

This guidance note applies to companies and unincorporated businesses with a property rental business which has ceased. The rules are similar to those in the Post-cessation receipts and expenses of a trade 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 property.

An individual partner will permanently cease to carry