Introduction

Acknowledgements

Acknowlegdement is given to Peats Accountants, Poole, for the source material.

Crown Copyright material is reproduced with the permission of the Controller of HMSO and the Queen's Printer for Scotland.

Introduction to Subject

Residential letting is a business, but various court cases have established that it is not a trade. It would only be a trade if you were running a hotel, guest house, B & B or furnished holiday lets. Profits are calculated in accordance with the same rules applicable to a trading business, however. For the purposes of calculating profits and losses, property let in the UK is all pooled, regardless of whether is freehold, leasehold, furnished or unfurnished, residential or commercial.

Legislation

• Income Tax (Trading and other Income) Act 2005
• Income & Corporation Taxes Act 1988