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 HRMC 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.

TaxAid helpline

Our helpline offers professional, free, confidential advice to people on low incomes