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This guidance note summarises the position where the individual has an investment in a letting property as a sole trader or through a partnership and is therefore subject to income tax on property income. For details of the taxation of property income in companies, see the Taxation of property income for companies guidance note and for a comparison of the difference between holding a property as an investment or for trading purposes see the Property investment or trading? guidance note.

In terms of whether the property should be held individually, in partnership or in a company, the factors will be very similar to those for choosing a trading vehicle. This is considered in the Choosing the business vehicle guidance note.

For a client factsheet which summarises the key tax implications for an individual investing in a buy to let property see the Client factsheet ― investing in a buy to let property.