Income from UK situated property is taxed on companies as profits from a UK property business. Income from overseas property is taxed as profits of an overseas property business. Income from all UK property is treated as a single source of business income. A single source means that all profits and losses are pooled together. Where the pool creates a profit it is taxed as profits from a UK property business; where the pool creates a loss the loss is relieved according to the loss relief rules for a UK property business.
The income is brought into charge to tax using accounting principles as applied for trade profit ie the basis of taxation will be an accruals basis for the recognition of income.
Expenses
As rental income is treated as business income deduction of expenses follows the normal rules. Relief...
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Income from UK situated property is taxed on companies as profits from a UK property business. Income from overseas property is taxed as profits of an overseas property business. Income from all UK property is treated as a single source of business income. A single source means that all profits and losses are pooled together. Where the pool creates a profit it is taxed as profits from a UK property business; where the pool creates a loss the loss is relieved according to the loss relief rules for a UK property business.
The income is brought into charge to tax using accounting principles as applied for trade profit ie the basis of taxation will be an accruals basis for the recognition of income.
Expenses
As rental income is treated as business income deduction of expenses follows the normal rules. Relief...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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