Property income for individuals ― overview

Produced by Tolley

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Property income for individuals ― overview
  • Property income ― the tax charge
  • Property business income ― further tax guidance

Property income for individuals ― overview

Property income ― the tax charge

The charge to UK income tax applies to the profits of both a UK and an overseas property business, and a property business is one that generates income from land such as rents or licences paid to occupy the land.

A UK resident person (ie an individual or trustee) is subject to income tax on the profits of both their UK and overseas property businesses. A non-UK resident person (ie an individual, trustee or, prior to 6 April 2020, a non-UK resident company investing in property) is only subject to income tax on the profits of their UK property business and not their overseas property business.

Some activities are not treated for tax purposes as a property business, these include:

  1. a trader who lets out an unused part of land or premises, eg

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