How many rental properties can someone own before HMRC consider them to be running a rental business as opposed to merely owning, renting and declaring on rental pages on tax return.
Husband and wife currently own 2, but thinking of buying couple more.
Thanks in advance for your help
DW
Replies (2)
Please login or register to join the discussion.
Depends on what you mean by "business"
For a rental "business" to begin (and thus taxed as income from land and property) then you only need one.
http://www.hmrc.gov.uk/manuals/pimmanual/PIM2505.htm
If you mean "business" as akin to a "trade", (and thus taxed as a trade) then this depends on whether other "services" are supplied along with the normal letting (e.g. meals, regular cleaning).
As many as they like. As mentioned just owning one commences your rental business. Regards Peter