Part 3

Property income
Chapter 3

Profits of property businesses: basic rules

Charge to tax on profits of a property business

Income charged
270
1
Tax is charged under this Chapter on the full amount of the profits arising in the tax year.
2
Subsection (1) is subject to Part 8 (foreign income: special rules).
3
If, as respects an individual carrying on an overseas property business, the tax year is a split year—
a
tax is charged under this Chapter on so much of the profits referred to in subsection (1) as arise in the
UK
part of the tax year, and
b
the portion of the profits arising in the overseas part of the tax year is, accordingly, not chargeable to tax under this Chapter.
4
In determining how much of the profits arise in the
UK
part of the tax year—
a
determine first how much of the non-CAA profits arise in the
UK
part by apportioning the non-CAA profits between the
UK
part and the overseas part on a just and reasonable basis, and
b
then adjust the portion of the non-CAA profits arising in the
UK
part by deducting any
CAA
allowances for the year and adding any
CAA
charges for the year.
5
In subsection (4)—
- “
CAA
allowances
” means allowances treated under section 250
...
of
CAA
2001 (capital allowances for overseas property businesses) as an expense of the business;
- “
CAA
charges
” means charges treated under
that section
as a receipt of the business;
- “
non-CAA profits
” means profits before account is taken of any
CAA
allowances or
CAA
charges.
S. 270(3)-(5) inserted (with effect in accordance with Sch. 45 para. 153(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 45 para. 81
Words in s. 270(5) omitted (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), Sch. 5 paras. 2(2)(a), 12(1) (with Sch. 5 paras. 15, 18(4), 19)
Words in s. 270(5) substituted (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 5 paras. 2(2)(b), 12(1) (with Sch. 5 paras. 15, 18(4), 19)