This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

When does a rental business cease?

By Jennifer Adams, October 2020

Jennifer Adams considers the date on which a property business ceases to trade. 

For UK tax purposes all sources of rental income, be they commercial or residential lets, furnished or unfurnished, are regarded as being derived from the same single property rental business, except for furnished holiday lets (FHL), which are kept separate. EU lettings and EU FHL are also separate activities. 

How many properties? 

This ‘consolidation’ approach means that the business does not cease just because one property has been sold or the rental ceases from one property. The business would also not cease if the landlord disposed of one property and at the same time bought another to let; it only ceases when the last let property in the portfolio has been disposed of.  

However, should the business comprise just one property, the business would cease when the last

This is one of our 1907 Premium articles

To see this article in full and unlock access to our complete library of 1907 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!