Taxation of property income for companies

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Taxation of property income for companies
  • Property receipts
  • What is property income
  • Calculation of profits and losses of a property business
  • Other topics relevant to property income for companies

This guidance note summarises the position where a company has an investment in property and is therefore subject to corporation tax on property income. For details of the taxation of property income for individuals, see the Taxation of property income for individuals guidance note and for a comparison of the difference between holding a property as an investment or for trading purposes, see the Property investment or trading? guidance note.

Property receipts

For corporation tax purposes, rental profits from land and buildings are categorised as either:

  1. a UK property business, or

  2. an overseas property business, see the Overseas property businesses for companies guidance note

CTA 2009, ss 205–206

England, Wales, Scotland and Northern Ireland make up the countries of the UK. The Isle of Man and the Channel Islands are treated as overseas for the purposes of the legislation.

This means that profits from UK-situs properties are pooled together and reported as one business, and profits from properties sited outside the UK are pooled together and reported as one business.

The exceptions to this are:

  1. furnished holiday lettings, which are calculated and reported separately, see the Furnish

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