How are profits or gains on UK residential property taxed?

This signpost provides links to practical tax guides which explain the different ways in which profits or gains on the disposal of UK residential property and land are taxed for a variety of taxpayers.


UK resident individuals

PRR: Private Residence Relief
What is Private Residence relief (PRR)? What are the qualifying conditions? Can you claim relief on two homes? How do you claim PRR? Can you claim PRR if you develop your garden?

Gardens: selling & development
What are the potential tax consequences of selling a garden for development purposes? What if the owner develops the garden?

Can my Company build my house or an office in my grounds?
Many company owners work from home. This guide looks at how you may obtain tax relief on the cost of converting the spare room or building a deluxe summerhouse to serve as an office in the garden.

Can I charge my company rent for use of my home?
What expenses can I claim for working from home? The same rules apply to home working directors as other employees. A director is more likely to be able to charge rent and there may be some additional issues and complications by virtue of their office. With links to guides for Employees and the Self Employed.


Non-residents

Non-resident CGT: UK property
How and when does Capital Gains Tax apply to non-residents owning UK property?

Non-Resident Landlords
Company landlords move from Income tax to Corporation Tax from 6 April 2019.

SDLT: Non-residents' surcharge
Non-UK residents have been subject to a 2% Stamp Duty Land Tax (SDLT) surcharge on the acquisition of residential property in England or Northern Ireland since 1 April 2021.  


Everyone

Different ways of taxing UK property
This guide summarises the different ways of taxing income and gains in respect of the exploitation of UK property.

Adviser's guide: Property Business, profits & losses
What is property income? How is it taxed? How are profits calculated? How are losses relieved? Is NI paid on property income? Is property income classed as a business activity?

Property profits & losses: Toolkit (2024-25)
Our Property profits & losses toolkit takes HMRC's version and adds a great deal more information about what you can claim as an individual. There are separate rules for companies carrying on property businesses.


Developing property and land 

Profits from dealing in or developing UK land
A guide to the rules which replaced the old Transactions in Land provisions and extended UK taxation to all profits from trading in and developing UK land, regardless of residence..

Residential Property Developer Tax
What is the Residential Property Developer Tax (RPDT)? What is residential property and who is a developer? Are there any allowances or exemptions?


Reporting gains on UK residential property and Non-residents reporting of all UK property

Key guides to the 60 day reporting and payment requirements


Tax Trivia

  • Private residence relief is often erroneously referred to as "Principal Private Residence relief", but the legislation at TCGA 1992 s.222 does not use the description principal, it uses "main".
  • To claim PRR a property must qualify as "a residence" therefore you must not only reside at the premises but also establish sufficient quality of occupation.

Stamp Duty Land Tax (SDLT), Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT)

SDLT: Rates & Allowances
What is Stamp Duty Land Tax (SDLT)? What are the rates of Stamp Duty Land Tax (SDLT)?

SDLT: Residential Property & dwellings
What is residential property for Stamp Duty Land Tax (SDLT)? What tax rate applies?  What garden and grounds are subject to higher rates of SDLT?

SDLT: Multiple Dwellings Relief (MDR)
What is Multiple Dwellings Relief (MDR)? When does it apply and how is it claimed?

SDLT: Residential property higher rate
What Stamp Duty Land Tax (SDLT) rate applies for the purchase of a second home? What is the SDLT higher rate? Are there any reliefs from the SDLT higher rate?

LBTT: Land and Buildings Transaction Tax
What is Land and Buildings Transaction Tax (LBTT)? What are the rules?

Welsh Land Transaction Tax (LTT)
What is Land Transaction Tax? How does it operate? What reliefs are available? 



Oak ad
Are you enjoying our content? 

Thousands of accountants and advisers and their clients use www.rossmartin.co.uk as their primary TAX resource.

Register with us now to receive our receive our FREE SME Topical Tax Update & newletter.