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Who is taxable on property income?

The profits of a property business are charged to income tax or corporation tax as appropriate¹. This ensures that tax is charged on rental receipts whether the property concerned is in the UK or overseas.

For income tax purposes the person liable for any tax charged is the person receiving or entitled to the profits or income².

There are nevertheless some differences between the rules for UK and overseas property, but these exceptions are treated as such. One major distinction between UK and overseas property businesses is the liability to tax in respect of the profits of such businesses. Both UK residents and non-residents are liable to tax in respect of the profits of UK property businesses³. Non-residents are not taxed on the profits of overseas property businesses⁴. For further details of the tax treatment of non-resident companies carrying on UK property business and the non-resident landlord scheme see D4.122B and B6.217.

Rules specific to income tax

Except where