Uk Taxation Treatment For Rental Income

Property Rental Income for Individuals

UK Rents and licence’s are regarded as UK land and property. Land and property income is all income deriving from such property as if it were a trade. Therefore this is calculated as all income being assessed in the tax year on an “accruals” basis. This means that income is taxed on an “arising” basis in the year of assessment, i.e. income that is due in the year, and not necessary income that is actually paid by the tenant.

For example if a tenant per the tenancy agreement is obliged to pay