Property tax is an exact process – the law tells taxpayers what they should pay, how to work out the figures and when the tax is due.
Lawyers follow a ‘points to prove’ strategy:
- Only reference original advice – not a third party interpretation or opinion
- Read the statute, definitions and stated cases and apply the tests to your circumstances
- Prove each point carefully and honestly – do not distort the results to suit yourself
The key place to read about property tax is the Income Tax (Taxation of Other Income) Act 2005 [Opens in new window]
This statute lays out the tests for deciding what sort of property business you run and then the accounting rules and taxes that are applied to the income, expenses and profits.
Some of the sections have been revised since the statute was introduced – especially those relating to furnished holiday lettings.
Other rules and regulations are included in each year’s finance act and statutory instruments issued by ministers.
The latest Acts of Parliament and other legislation are published on the government’s legislation web site [Opens in new window]
Rulings in courts and tribunals
Some of the finer points of statute are tested and revised in the courts. The judgments are published on government and legal web sites.
To see write-ups of tax cases, check the tribunals service web site [Opens in new window]
HM Revenue and Customs web site
HM Revenue and Customs (HMRC) publishes a wealth of property tax information online – but remember the advice is official guidance not law.
For general information go to the HMRC web site start page.
The main places to look for property tax information are:
Property Income Manual (PIM)
This is the HMRC take on property tax for landlords. Some of the pages are a little out of date, but the manual remains a good source of tax advice.
Go to the Property Income Manual [Opens in new window]
Capital Gains Manual
This covers capital gains tax for landlords – but the information is broadly spread throughout the manual and you really need to know what you are looking for to avoid missing essential details.
Go to the Capital Gains Manual [Opens in new window]
