Meg Saksida looks at some potential problem areas in tax for property landlords.
If a landowner exploits their UK land to generate rental income, whether it is bare land or the letting of commercial or residential property, whether it is profitable or running at a loss, it will be defined in law as a receipt of rental income. The income is generated through the operation of a rental business which is taxable in the UK, irrespective of whether the landowner is UK resident or non-UK resident. In addition, UK resident landlords with offshore rental income will be taxed in the UK using the same principles.
Getting the tax right can sometimes be a challenge, and some areas are at more risk of error than others.
Who owns the property?
Where the let property is owned by an individual, all the net profit will be taxable on that taxpayer. In cases where the property
