Income Tax (Trading and Other Income) Act 2005 section 783BA

"Relevant property business" of an individual

Section 783BA defines what counts as a "relevant property business" for an individual, and identifies certain types of property income that fall outside this definition.

• An individual's property business is a "relevant property business" for a tax year unless it qualifies as a rent-a-room property business for that year.
• A property business is a rent-a-room property business if the individual qualifies for rent-a-room relief and all receipts that would otherwise be brought into the profit calculation are rent-a-room receipts.
• Property income distributions from a property Authorised Investment Fund (AIF) or a Real Estate Investment Trust (REIT) that are treated as profits of a UK property business are not relevant property businesses.
• An individual's share of a partnership property business is also excluded from being a relevant property business, though this is dealt with elsewhere in the legislation.