client owns building. He operates a health centre from the building by letting out rooms to self-employed health practitioners.
the client provides reception, administrative and marketing services for the centre as a whole
is the income derived from the practitioners - trading or land and property?
Replies (2)
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Tricky one - first instinct is that this is income from a property related business. However, there was a case similar to this which went in the taxpayers favour but cant remember the name of it. It involved a commercial property which had a receptionist and serviced spaces. Having said that, now I am not sure whether the argument was the level below trade and that the judgement was that the property was not an investment property but was a business (note, not a trade). But again it depends on the level of service and how active they are with the tenants. If the tenants are on long term leases this will hinder the argument.
Are you looking into CGT reliefs or just classification of income on the tax return?