PIM4422 | Property allowance: contents: definitions: relevant property business

This term is defined in ITTOIA05/S783BA (1) as any property business which is not a rent-a-room property business (see PIM4000).

A rent-a-room property business is one where the individual qualifies for rent-a-room relief for the tax year and all receipts are rent-a- room receipts.

This is subject to two further exceptions when profits of a UK property business do not form part of the relevant property business for the Property Income Allowance:

1. Any property income distributions received by an individual which are treated as profits of a UK property business by virtue of regulation 69Z18 (1) or (2) of SI2006/964 (property AIF distributions (see CTM48800))

2. Any distributions received which are treated as profits of a UK property business by virtue of CTA10/S548 (6) (REIT distributions (see SAIM5310))

Income from these two sources will continue to be taxed in the usual way and should not be considered when deciding if an individual is eligible for the property income allowance