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HMRC internal manual

Property Income Manual

Introduction: Property Income: IT

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)