Income Tax (Trading and Other Income) Act 2005 section 273

Amounts not brought into account as part of a property business

Section 273 identifies certain types of property income that are excluded from the calculation of property business profits because they may instead be taxed as trading income.

• Income from tied premises, caravan sites used in a trade, surplus business accommodation and wayleave payments may be treated as trading income rather than property income.
• Where these provisions apply, the relevant amounts are removed from the property business profit calculation and brought into account as part of a trade instead.
• The section acts as a signpost to four specific provisions in Part 2 of the Act (sections 19 to 22) that govern when this treatment applies.
• The effect is to prevent double counting by ensuring these amounts are taxed in one category only — either as property income or as trading income, but not both.