Income Tax (Trading and Other Income) Act 2005 section 270

Income charged

Section 270 sets out how profits from a property business are charged to income tax for a tax year, including special rules where an individual with an overseas property business has a split year.

• Tax is charged on the full amount of profits arising in the tax year, subject to the special rules for foreign income in Part 8
• Where an individual with an overseas property business has a split year, only profits arising in the UK part of the year are taxable under this chapter
• Non-CAA profits must first be apportioned between the UK and overseas parts of the year on a just and reasonable basis
• The UK portion is then adjusted by deducting any capital allowances and adding any capital allowance charges for the year