Income Excluded From A UK Property Business

HMRC publishes a list of income streams that are excluded from a UK property business. The list includes fishing concerns, hotels and guest houses, tied premises, caravan sites, lodgers and tenants in your own home, extra services to tenants and letting surplus trade accommodation. In most cases the income from these activities will be taxed as income of a trade and not as property income.

There are also certain receipts which can arise out of the use of land and which are specifically excluded by statue from a rental business. These include yearly interest, income from the occupation of woodlands managed on a commercial basis, income from mines and quarries and income from farming and market gardening.

In addition, there is a £1,000 property income allowance that applies to income from property. If a taxpayer’s annual gross property income is £1,000 or less, the amount is exempt from tax and does not need to be reported on a tax return.

Posted by Cassey Nixon on

28th October 2019

Categories

  • 13-week cashflow forecast

    We have a 13-week cashflow forecast for our clients to complete. This will help you to see where you need to cut costs and show you a clearer picture of where your business is headed. We hope this helps you during these uncertain times. Covid-19 13 Week Cashflow Forecast   

  • New Hardship Fund

    At the Spring Budget 2020 the Chancellor announced a new £500 million Hardship Fund in England. On 24 March 2020, it was confirmed the Hardship Fund will provide council tax relief to vulnerable people and households to help those affected by Coronavirus. This means that the money will go to local authorities in England to […]