ÀÏ˾»úÎçÒ¹¸£Àû

Property income


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance

Property income


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
imgtext

It is common for trustees to receive rental income from properties held as investments.

In general, the same tax principles of property businesses apply to persons, whether they are individuals, trustees or personal representatives, but there are some differences. These principles, and the exceptions which apply to trustees, are discussed below.

Type of property business

For income 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 business for individuals guidance note)

ITTOIA 2005, ss 264–265

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 UK rental profits are pooled together and reported as one business and overseas rental profits are pooled together and reported as one business.

The exceptions to this are:

  1. •

    furnished holiday lettings (FHL) which are calculated and reported separately (although it should be noted that the furnished

Continue reading
To read the full Guidance note, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL
Powered by
  • 05 Aug 2024 09:20

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on trusts — income tax and CGT

Popular Articles

Corporation Tax

Qualifying charitable donations

Qualifying charitable donationsCompanies can obtain corporation tax relief for qualifying payments or certain transfers of assets to charity under the qualifying charitable donations regime. Definition of qualifying charitable donationThe definition of ‘qualifying charitable donations’

14 Jul 2020 13:03 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Holdover relief for disposals by trustees

Holdover relief for disposals by trusteesOverviewWhere a capital gain has been realised on an asset that has been disposed of and that disposal was not for full value (that is not in an arm’s length sale) then holdover relief may be available. This will happen when trustees appoint capital assets

14 Jul 2020 11:54 | Produced by Tolley Read more Read more
Personal Tax

Interest and penalties on late paid tax under self assessment

Interest and penalties on late paid tax under self assessmentInterestIf the capital gains tax, the balancing payment or payments on account of tax and / or Class 4 national insurance contributions (NIC) are paid late, HMRC will charge interest on the amount overdue from the original due date. The

14 Jul 2020 12:00 | Produced by Tolley Read more Read more