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Storage or Rental Income

Posted by ssclover PM | on Thu, 26/01/2012 - 17:17  393  1 comment | report

Hi

 

Could anyone explain if storage income is treated the same as rental income on a corporation tax return please?

 

I have a client who has "rented" excess space in his warehouse for someone to use as storage and wants it treated as income from the trade of the company not separated out on the return as income from rental

 

thanks

 

Comments

Service

andrew.hyde | Fri, 27/01/2012 - 14:09 | Permalink

Surely the difference is that if you do no more than passively allow someone to use part of your premises - that's rental income.  In practice you can sometimes treat it as trading income. See http://www.hmrc.gov.uk/manuals/bimmanual/bim41015.htm

If you actively provide services - security, insurance, refrigeration, collection/delivery, stacking etc - that's the trade of storage or warehousing I think.