Income from UK situated property is taxed on companies as profits from a UK property business. Income from overseas property is taxed as profits of an overseas property business. Income from all UK property is pooled into a single source of business income. Where that pool creates a profit, it is taxed as profits from a UK property business; where the pool creates a loss, the loss is relieved according to the loss relief rules for a UK property business. UK property business income is taxed on an accruals basis. Relief is given for expenses incurred wholly and exclusively for the UK property business. Interest on loans taken out to buy properties is never a UK property business expense for companies, it is instead relieved under the loan relationship rules. There are additional rules for the treatment of reverse premiums.
