The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
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.
For corporation tax purposes, rental profits from land and buildings are categorised as either:
a UK property business, or
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:
furnished holiday lettings, which are calculated and reported separately, see the Furnish
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