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Income Tax

Residential letting is a business, but various court cases have established that it is not a trade.  It would only be a trade if you were running a hotel, guest house, B & B or furnished holiday lets.  Profits are calculated in accordance with the same rules applicable to a trading business, however.

For the purposes of calculating profits and losses, property let in the UK is all pooled, regardless of whether is freehold, leasehold, furnished or unfurnished, residential or commercial.

Log in for detailed information on:

• Registration for Self Assessment
• Submission of returns
• Payments on account
• Claim to reduce payments on account
• Completion of Self Assessment Return
• Rents receivable
• Deductible expenditure
• Capital expenditure and repairs
• Conversion of flats above shops
• Capital allowances
• 10% wear and tear allowance
• Loan interest
• Mileage
• Legal and professional expenses
• Wages
• Council tax, water and sewerage rates gas and electrity
• Expenses of property let uncommercially
• Pre-letting expenditure
• Losses
• Non resident landlords
• Rent a room relief
• Furnished holiday lets (s503-504 ICTA 1988)