Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Property Income Manual

Updates: Property Income Manual

2016

published amendments

Introduction: jointly owned property & partnerships
Also changed reference to the IN guidance
Updated IN125 ref to TSEM9800

published amendments

Rent-a-room: elections and time limits
Updated exemption limits.
Rent-a-room: losses
Updated exemption limit figures from £4,250 to £7,500
Rent-a-room: receipts above exemption limit
Updated figures in example to apply to new exemption limits.
Rent-a-room: exemption limits
Updated exemption limits to £7,500/£3,750 throughout. Added years old limits cease and new limits take effect. Updated "Chargeable under schedule A" to "Chargeable as a rental business".
Rent-a-room: overview
Updated exemption limits and added dates for the old limits and new limits being effective.
Use of trading income rules: similarities and differences to trading income rules
Updated to include long funding lease provisions at s148A-s148J. Commencement provisions are at FA2006 Sch 8 Para 15 -doesn't apply from 05/05 but 1/4/06. Have put a note in to reflect but not included the terms of the exception.

published amendments

Deductions: main types of expense: expenses for own home
Added PIM2106 for detail of finance cost restriction
Deductions: main types of expense: fees for loan finance and similar items
Updated to refer to finance restriction

published amendments

Deductions: main types of expense: fines
HEADING STYLES FORMATTED

published amendments

Deductions: main types of expense: fines
heading styles formated

2017

published amendments

PIM Feedback
Updated feedback email link from Allana Sheil to Sean Richardson.

published amendments

Deductions: main types of expense: fines
Minor correction to example calculation

published amendments

Deductions: main types of expense: fines
Amendments to example calculations

published amendments

Use of trading income rules: application of trading income rules: IT
- added hyperlinks to BIM references - previously page 1103
Use of trading income rules: similarities and differences to trading income rules
- split from page 1101
Use of trading income rules: splitting receipts and expenses between years: examples
- Page split from 1101 - Minor changes made to text
Use of trading income rules: splitting receipts and expenses between years
- split examples from page - added hyperlinks to BIM pages - added reference to cash basis at top of page - signposted interest restriction - use of cash basis section to be archived
Introduction: jointly owned property & partnerships
updates to CTA09 primarily. some style changes to remove secondary bullet points.
Introduction: contents
add pim1005
Introduction: what is a UK property business?
update to CTA09. update cash basis
Introduction: Property Income: IT
taken out a lot of unnecessary detail updated references
Income chargeable: commonhold
- removed references to old legislation
Income chargeable: contents
- Additional page added
Income chargeable: local authority grants & other contributions
- previously 1056 - hyperlinked added to BIM ref - funds under the auspices of the European Community - funds granted by European Union or associated bodies
Income chargeable: overview
- hyperlink to BIM references added - Deposits/bonds section moved to 1052
Income chargeable: rent-charges, ground annuals, feu duties
- previous contents of 1054
Income chargeable: disposal of waste on land
- Previous contents PIM1052 - Updated referrals to be made to BAI and linked to intranet site
Income chargeable: deposits or bonds taken from tennants
- Minimal rewriting of section split from 1051 - Previous 1052 now 1054

published amendments

Rent from property outside the UK: CT cases
- updated to reflect CTA09
Rent from property outside the UK: IT cases up to 2004-05
- copied from previous location - hyperlink added
Income excluded from UK property business: rent receivable from UK electric-line wayleaves: IT
- added legislation title
Income excluded from UK property business: rent receivable in connection with mines, quarries and similar concerns: IT
- added legislation title
Income excluded from UK property business: wayleaves: CT
- Updated legislation and removed references to cases and removed references to schedules and cases - Removed legislation section as added as title - Removed section defining easements as does not appear to be defined in CTA09 sections
Income excluded from UK property business: wayleaves & easements: IT
- moved from pim 1115 - added legislation as title - added links to other manuals
Income excluded from UK property business: other property income
- Rewritten
Income excluded from UK property business: overview
- legislation updated

published amendments

Rent from property outside the UK: contents
Reordered pages
Rent from property outside the UK: IT cases for 2005-06 onwards
- copied from previous location
Income excluded from UK property business: contents
Updated to reflect changes to pages
Use of trading income rules: contents
- Additional page added as examples split from overview
Income chargeable: contents
Updating contents page
Income chargeable: sporting rights
- previously 1060 - inspector changed to officer
Income chargeable: furnished lettings
- previously 1058 - old legislation ICTA88/S15 (1) 4 removed - shortened title
Introduction: life interest trusts
Change CTIAA to BAI
Introduction: overview
deleted refs to wear and tear. add cash basis, replacement of domestic items relief, property allowance and updated legislative references

2018

published amendments

Losses for CT: contents
Updating contents page to reflect new sections
To be contents page for CT losses section
Losses for CT: Restriction following a change in company ownership
Updating ICTA to CTA rules, linking to CTM where more appropriate and expanding guidance for companies without investment business.
Losses for CT: group relief
Updated to mostly refer to CTM for more detailed guidance.
Losses for IT: contents
Additional pages added to break up information further
Capital allowances: contents
Creating contents page
Rents related to a trade or profession
Updated legislation etc. Final paragraph deleted as out of date
Losses: setting losses against general income
Updating statutory references, laying guidance out more in line with statutory provisions.
Losses: setting losses against future profits
Updated legislation and removed taxpayer
Losses: overview
Updated, removed duplication
Capital allowances: overview
- updated legislation etc.
Capital allowances: calculation
- removed reference to schedule a
Capital allowances: qualifying plant and machinery
Removed ABA and IBA pages Updated page on qualifying plant and machinery
Capital allowances: furnished holiday lettings
Replaced hotels page with FHL page

published amendments

Other sums treated like premiums: Payments to a person other than the landlord
update refs and gender neutral
Other sums treated like premiums: Sums received for variation or waiver of the terms of a lease
update refs and diversity
Other sums treated like premiums: Sums payable in lieu of rent or for surrender of a lease
update refs and formatting and diversity
Other sums treated like premiums: Lease requiring tenant to carry out work on premises
update refs, names more ethnically diverse. remove ref to district
Other sums treated like premiums: Overview
update refs and formatting. use formula for example
Deductions: main types of expense: fines
Added subtitle to page. No change to text
Premiums: Definition of a premium
purely defining a premium and distinguishing from rent. no longer about taxation of premiums

published amendments

Furnished lettings: contents
make only contents page
Furnished lettings: Renewals basis: 2012-13 and earlier
make old renewals basis
Furnished lettings: wear & tear allowance: 2010-11 and earlier
change to ESC B47 -wear and tear
Furnished lettings: wear & tear allowance: 2011-12 to 2015-16
change to wear and tear allowance from 2011/12-2015/16
Furnished lettings: Replacement of domestic items relief: 2016-17 onwards
change from wear and tear allowance to current relief for replacement of domestic items
Furnished lettings: Overview
change to overview page
Other sums treated like premiums: Mineral-bearing land: “Treasury Arrangement”
update leg refs
Other sums treated like premiums: Seeking advice from the Valuation Office Agency
add links to bai and voa. change wording slightly
Premiums: lease granted between 12 June 1969 and 25 August 1971
add voa
update refs. add BAI submission
Premiums: lease granted on or before 12 June 1969
add voa
update refs and formatting. add bai submission
Premiums: lease granted on or after 25 August 1971: term of lease treated as longer than stated
add voa
update refs and formatting. add BAI submission
Premiums: lease granted on or after 25 August 1971: term of lease treated as shorter than stated
add VOA
update refs and formatting. update to BAI
Other sums treated like premiums: Sale of property with right to lease back
added example, updated refs,
Premiums: contents
add 1203 - taxation of premiums
Premiums: how the charge is calculated
change to formulaic approach plus update dates
Premiums: 'Granting' vs 'assigning' a lease
change of name
Other sums treated like premiums: Sale of property with right to buy back
update refs. change to formulaic approach
Other sums treated like premiums: Payable by instalments
update refs. inspectors to officers

published amendments

Beginning and end of a rental business: legislative references for post-cessation receipts and expenses
new page for legislative references for post cessation receipts and expenses
Beginning and end of a rental business: post-cessation receipts and expenses
changed from contents to page on post cessation for section above
Furnished holiday lettings: treatment of FHL losses for 2010-11 onwards
change to current losses page
Furnished holiday lettings: calculating profits and losses
total revamp - calc of profits/losses
Furnished holiday lettings: qualifying tests for CT taxpayers up to 2010-11
revamp - historic qualifying tests for CT
Furnished holiday lettings: historic qualifying tests for IT
change to historic IT cases - total revamp
Furnished holiday lettings: qualifying tests for 2011-12 onwards (IT and CT)
revamp. now harmonised rules(cases). use manual rather than helpsheets
Furnished holiday lettings: overview
change to overview. total revamp
Rent-a-room: elections and time limits
updat refs to CTIAA and Head Office (change to BAI)
Rent-a-room: losses
taxpayer to customer, formatting harmonisation, remove ref to tax office
Rent-a-room: receipts below exemption limit
formatting harmonisation
Rent-a-room: receipts above exemption limit
rejig of structure of page. formatting harmonisation
Rent-a-room: going abroad and/or occupying job related accommodation
diversity, formatting harmonisation, date updates, remove ref to Sch A
Rent-a-room: more than one source
formatting harmonisation
Rent-a-room: overview
formatting harmonisation
Rent-a-room: exemption limits
formatting harmonisation and minor sentence reconstruction
Rent-a-room: building divided into separate residences
formatting harmonisation
Rent-a-room: letting as office accommodation
update to BAI and formatting harmonisation

published amendments

Furnished holiday lettings: treatment of losses for 2010-11 and earlier
tidy up. could do with a complete makeover but as 'old guidance' I've not prioritised just now

published amendments

Beginning and end of a rental business: contents
- split information into more pages
Capital allowances: contents
Moving contents page

published amendments

Deductions: repairs: other rules
broke up, improved and updated repairs section
Deductions: repairs: is it capital?
updated + split repairs section
Deductions: repairs: overview
split into multiple repairs pages
Deductions: general rules: applying the wholly & exclusively rule
updated (including legislation)
Deductions: general rules: overview
Updated legislation

published amendments

Losses for IT: contents
Removed CT pages
Losses for CT: contents
Updating
Re-published to update with revised order

published amendments

Losses for CT: Restriction following a change in company ownership
minor formatting changes added update for 2017 change
Losses for CT: group relief
minor formatting added update for 2017 loss rules
Losses for CT: losses on cessation of business
minor formatting change
Losses for CT: setting losses against future profits
added update for 2017 rule change
Losses for CT: overview
minor formatting changes added update for 2017 changes
Rents related to a trade or profession
minor formatting changes
Rent from property outside the UK: CT cases
minor formatting changes renamed to CT cases
Rent from property outside the UK: IT cases for 2005-06 onwards
updated link and minor formatting changes
Losses for IT: specific rules for agricultural expenses
removed &
Losses: how relief is given against general income
added missing links and minor formatting changes
Losses: setting losses against general income
added missing links and minor formatting changes
Capital allowances: furnished holiday lettings
edited link
Updated to clarify loss guidance
Capital allowances: qualifying plant and machinery
updated link and formatting
Capital allowances: overview
minor style changes and added missing links, removed instance of taxpayer, removed reference to LESA and hotels, updated CA manual links, removed reference to withdrawn flat conversion allowance
Beginning and end of a rental business: legislative references for post-cessation receipts and expenses
removed reference to deleted BIM page corrected tax year formatting
Beginning and end of a rental business: cessation
Updated legislation and terminology Details re post cessation receipts/expenses and legislative references split into separate page
Beginning and end of a rental business: commencement
Updated legislation/terminology
Income excluded from UK property business: rent receivable from UK electric-line wayleaves: IT
minor style changes for consistency
Income excluded from UK property business: wayleaves: CT
minor style changes and fixed links
Income excluded from UK property business: wayleaves & easements: IT
style changes removed taxpayer corrected cg manual link
Income excluded from UK property business: other property income
corrected style and links
Income excluded from UK property business: overview
updated links
Use of trading income rules: similarities and differences to trading income rules
Updated links
Use of trading income rules: splitting receipts and expenses between years: examples
Minor style changes
Use of trading income rules: splitting receipts and expenses between years
updated links
Income chargeable: commonhold
added link
Income chargeable: local authority grants & other contributions
minor changes for consistent style
Income chargeable: rent-charges, ground annuals, feu duties
updated link
Deductions: premiums paid: contents
Moved premiums paid sub-section but not yet updated
Deductions: main types of expense: contents
new contents for main types of expense
Deductions: repairs: contents
Created repairs contents
Income chargeable: disposal of waste on land
link correction
Income chargeable: overview
updated links and formatting
Deductions: Contents
updated contents to reflect new structure
Deductions: general rules: contents
updated contents to reflect new structure
Deductions: apportionment on sale of a let property
moved, removed 2 additional pages and condensed into single page to reflect new, simpler legislation (discussed via email)
Deductions: sale and leaseback of land
moved and updated legislation
Deductions: interest: contents
New contents for interest sub-section
Deductions: main types of expense: rent collection
moved and updated link
Deductions: main types of expense: rates and council tax
moved and linked to bim
Deductions: main types of expense: rent paid out
moved and reordered, updated links
Deductions: main types of expense: salaries and wages of employees
moved and updated legislation
Deductions: main types of expense: cash back on loans
Moved
Deductions: main types of expense: bad and doubtful debts
Moved + updated to reflect new legislation/terminology
Deductions: main types of expense: fees for loan finance and similar items
moved, updates legislation and links
Deductions: main types of expense: fines
moved page and updated terminology
Deductions: main types of expense: criminal payments, bribes and similar items
moved and updated legislation
Deductions: main types of expense: costs due to common ownership
moved page and updated link
Deductions: main types of expense: advertising expenses
moved pages
Deductions: main types of expense: travelling expenses
Moved + updated to reflect new legislation/terminology New section for fixed rate mileage allowance
Deductions: main types of expense: legal and professional costs
Moved + updated to reflect new legislation/terminology
Deductions: main types of expense: cost of providing services
Moved + updated to reflect new legislation/terminology
Deductions: main types of expense: entertaining expenses and gifts
Moved + updated to reflect new legislation/terminology
Deductions: main types of expense: insurance premiums and recoveries
Moved + updated to reflect new legislation/terminology
Deductions: main types of expense: properties not let at a commercial rent
Moved + updated to reflect new legislation/terminology
Deductions: main types of expense: expenses for own home
Moved + updated to reflect new legislation/terminology
Deductions: interest: swaps held by IT payers
moved, not yet updated
Deductions: interest: interest paid abroad
updated to reflect new legislation/terminology
Deductions: interest: further restrictions of relief for interest on a loan used to invest in a property partnership
updated to reflect new legislation
Deductions: interest: restriction for income tax purposes from 2017/18: calculation
New pages for restriction of interest for IT
Furnished holiday lettings: contents
add PIM4140 and PIM4150
Deductions: interest: restriction for income tax purposes from 2017/18: apportionment
New pages for restriction of interest for IT
Deductions: interest: restriction for income tax purposes from 2017/18: introduction
New pages for restriction of interest for IT
Deductions: interest: overview
Updated legislation and wording
Furnished holiday lettings: treatment of FHL losses for 2010-11 onwards
Add legislation reference
Furnished holiday lettings: calculating profits and losses
Correct typos

published amendments

Premiums: 'Granting' vs 'assigning' a lease
Typo corrected
Premiums: How are premiums taxed?
Typo corrected
Deductions: interest: contents
updated interest contents
Beginning and end of a rental business: post-cessation receipts and expenses
Removed old contents page added legislation to top of page

published amendments

Deductions: premiums paid: interaction with capital allowances
Moved premiums paid sub-section nad updated
Deductions: premiums paid: deemed premium for surrender of a lease
Moved premiums paid sub-section and updated
Deductions: premiums paid: premises used for rental business
Moved premiums paid sub-section and updated
Deductions: premiums paid: payer sublets and receives a premium
Moved premiums paid sub-section and updated
Deductions: premiums paid: payer sublets without receiving a premium
Moved premiums paid sub-section and updated
Deductions: premiums paid: overview
moved premiums section. updated links, leg refs

published amendments

Deductions: premiums paid: liaison between offices
Moved premiums paid sub-section but not yet updated

published amendments

Deductions: sale and leaseback of land
attempt to remove dashes

published amendments

Rent from property outside the UK: IT cases up to 2004-05
correcting formatting of data and tables
Losses for IT: calculating restriction on sideways relief
reformatted to correct or remove tables
Income excluded from UK property business: rent receivable in connection with mines, quarries and similar concerns: IT
added links and minor style changes
Deductions: main types of expense: expenses for own home
corrected link
Deductions: interest: interest paid abroad
correct typo
Deductions: interest: further restrictions of relief for interest on a loan used to invest in a property partnership
formatting from legislative refs
Deductions: interest: restriction for income tax purposes from 2017/18: apportionment
minor style correction and added link
Deductions: interest: overview
updated links
Deductions: repairs: other rules
updated links
Deductions: repairs: is it capital?
updated links
Deductions: general rules: applying the wholly & exclusively rule
updated links
Deductions: general rules: overview
updated hyperlinks

published amendments

Use of trading income rules: application of trading income rules: CT
minor style change for gov.uk site, reformatted table
Use of trading income rules: application of trading income rules: IT
bottom of table formatted incorrectly on gov.uk website, have altered in attempted fix. linked to ca manual
Deductions: repairs: overview
removed dead link
Losses: overview
updated links and minor changes to formatting
Capital allowances: calculation
edited to try and correct formatting on gov.uk site changed example to reference later years renamed from example to calculation updated table

published amendments

Losses: setting losses against future profits
corrected table
Deductions: interest: restriction for income tax purposes from 2017/18: calculation
added link and formatting
Income chargeable: deposits or bonds taken from tennants
Finalising reviews

published amendments

Use of trading income rules: splitting receipts and expenses between years
added cash basis section

published amendments

Archived guidance
added new pages

published amendments

Archived guidance
Publishing new contents

published amendments

Losses: setting losses against future profits
table/links fix
Losses for IT: calculating restriction on sideways relief
removed table
Losses: overview
attempt to fix links on gov.uk site
Capital allowances: qualifying plant and machinery
issues on gov.uk - attempt fix by republishing
Capital allowances: overview
issues on gov.uk - attempt fix by republishing
Beginning and end of a rental business: cessation
gov.uk fix
Deductions: premiums paid: premises used for rental business
links added
Deductions: premiums paid: payer sublets and receives a premium
links added
Deductions: premiums paid: payer sublets without receiving a premium
links added
Deductions: premiums paid: overview
links added
Deductions: main types of expense: travelling expenses
updated links and table
Deductions: main types of expense: properties not let at a commercial rent
issues on gov.uk - attempt fix by republishing
Deductions: main types of expense: legal and professional costs
issues on gov.uk - attempt fix by republishing
Deductions: main types of expense: cost of providing services
issues on gov.uk - attempt fix by republishing
Income excluded from UK property business: other property income
corrected link
Use of trading income rules: application of trading income rules: CT
issues on gov.uk - attempt fix by republishing
Use of trading income rules: application of trading income rules: IT
issues on gov.uk - attempt fix by republishing
Use of trading income rules: similarities and differences to trading income rules
issues on gov.uk - attempt fix by republishing

published amendments

Furnished lettings: wear & tear allowance: 2010-11 and earlier
links
Furnished lettings: wear & tear allowance: 2011-12 to 2015-16
links/style
Furnished lettings: Replacement of domestic items relief: 2016-17 onwards
links added
Furnished lettings: Overview
links/style
Introduction: life interest trusts
corrected link
Introduction: basis periods for partnerships
links/style
Introduction: jointly owned property & partnerships
changed to customer links/style
Introduction: What is an overseas property business?
link/style
Introduction: what is a UK property business?
links added
Introduction: basis of assessment and time apportionment
minor style changes
Introduction: Property Income: IT
links added
Introduction: overview
links added

published amendments

Cash basis for landlords
added pages

published amendments

Losses for IT: calculating restriction on sideways relief
formatting

published amendments

Overseas landlords
significant updates and split into two pages

published amendments

Deductions: main types of expense: properties not let at a commercial rent
Removed hash that appear on gov.uk
Deductions: main types of expense: legal and professional costs
Removed hashes that were appearing on gov.uk
Introduction: basis periods for partnerships
update links
Introduction: jointly owned property & partnerships
update links
Introduction: what is a UK property business?
update links
Introduction: Property Income: IT
update links
Introduction: overview
update links

published amendments

Property allowance: contents
added pim4430, 4440
Adding pages

published amendments

Capital allowances: calculation
Tablr reformatted, no change to text
Losses: setting losses against future profits
Tables reformatted, no change to text
Use of trading income rules: application of trading income rules: IT
Table reformatted, no change to text.
Use of trading income rules: application of trading income rules: CT
Table reformatted, no change to text.
Furnished lettings: Replacement of domestic items relief: 2016-17 onwards
changed 'we' to 'be'

published amendments

Premiums: lease granted between 12 June 1969 and 25 August 1971
links added
Archived guidance: deductions: main types of expense: landlord’s energy savings allowance
corrected table formatting
Archived guidance: trading income rules: application of trading income rules: IT to 2004-05 and CT to 2008-09
corrected table formatting
Cash basis for landlords: receipts and expenses
correcting gov.uk formatting issue
Cash basis for landlords: transitional adjustments on entering the cash basis
link added
Premiums: contents
link added
Premiums: How are premiums taxed?
minor formatting changes and links added
Premiums: 'Granting' vs 'assigning' a lease
remove taxpayer
Property allowance: contents: exclusions from relief: close companies
slight change to last sentence
Property allowance: contents: exclusions from relief: residential property finance restriction
amendment to first and last paras
Property allowance: contents: examples: When it can be beneficial for individuals to elect for full relief not to apply
updated as per Yasmin's comments
Property allowance: contents: examples: computation of partial relief for one relevant property business
add guidance

published amendments

Furnished holiday lettings: overview
added links

published amendments

Furnished holiday lettings: Historic treatment of furnished holiday lettings
links and formatting

published amendments

Deductions: interest: restriction for income tax purposes from 2017/18: calculation
Update the % of the partnership share in the example as the figures were wrong. Was supposed to be one third rather than 30% of the partnership profits.

published amendments

Furnished holiday lettings: treatment of losses for 2010-11 and earlier
links + formatting
Furnished holiday lettings: calculating profits and losses
links added
Premiums: lease granted on or after 25 August 1971: term of lease treated as shorter than stated
added links

published amendments

Furnished holiday lettings: treatment of losses for 2010-11 and earlier
Removed reference in National Insurance to other page that makes no reference to Class 4 NICs
Furnished holiday lettings: special tax treatment of furnished holiday lettings
formatting and links