Part 3Property income

Chapter 3Profits of property businesses: basic rules

Calculation of profits : application of trading income rules

F1271EProfits of a property business: application of trading income rules

(1)

The profits of a property business are calculated in the same way as the profits of a trade.

(2)

But this is subject to—

(a)

section 272, which limits the rule in subsection (1) in relation to a property business whose profits are calculated in accordance with GAAP, and

(b)

section 272ZA, which limits that rule in relation to a property business whose profits are calculated on the cash basis.