PIM1003 - Introduction: Property Income: Income Tax

Key Points on current rules

• Current legislation for property businesses carried out by individuals or partnerships is within Part 3 ITTOIA2005
• Income from property profits and losses are mostly computed using the cash basis (see PIM1090 onwards) as of tax year 2017-18, subject to certain exceptions. Prior to this they were calculated using normal trading income principles.
• The basis period for a property business carried out by an Income Tax customer is the tax year (6 April to 5 April) with only two exceptions (see PIM1010 for more details)
• For rules on how individuals and partnerships can use losses from a property business please see PIM4200 onwards (and PIM4120 for Furnished Holiday Lets)
• Relief for finance costs (mortgage interest etc.) in respect of a dwelling related loan is restricted for tax year 2017-18 and onwards (see PIM2050 onwards)