PLEASE NOTE: The charity TaxAid advises only those people on low incomes whose problems cannot be resolved with HMRC.

Property Owners

Property Owners

What is property income? Property income is any income from land or buildings. Property income includes:

  • Renting out property furnished or unfurnished on the business or domestic market
  • Furnished holiday lettings
  • Letting accommodation within your home to a lodger
  • Informal arrangements such as letting a neighbour park their car on your drive or graze a horse on a field you own

It does not include:

  • Farming or market gardening
  • Trading income from guest house and B&B accommodation
  • Rights relating to tolls, mines and quarries etc

Income from hotels, guest houses and B&B accommodation, though it includes a charge for renting accommodation, is treated as trading income because it involves the provision of additional services.

Further guidance can be found on the HMRC website: http://www.hmrc.gov.uk/manuals/pimmanual/PIM1051.htm. If you own property you may also need to consider Capital Gains Tax and Inheritance Tax. Special rules apply if you have lived in the house before or after renting – see the Capital Gains Tax and Inheritance Tax pages  for more information.