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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
- 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: example
- 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/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
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
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
Capital allowances: furnished holiday lettings
Updated to clarify loss guidance
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/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

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

Income chargeable: deposits or bonds taken from tennants
Finalising reviews