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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

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