Post-cessation receipts and expenses of a property business

Produced by Tolley in association with of Crane Dale Tax

Owner-Managed Businesses

Guidance

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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 on their property

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Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

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