PIM4424 - Property allowance: contents: definitions: relievable receipts

This term is defined in ITTOIA05/783BB (1) as all the amounts which would normally be brought into account as a receipt (before deducting any expenses) in calculating the profits of a property business for the tax year.

Examples include rents or rates from letting out property, premiums for granting of a short lease that are charged to income tax (see PIM1200 onwards) or capital allowance balancing charges (see PIM3020).

However, the following are specifically excluded so should not be taken into account when calculating relievable receipts:

• Any rent-a-room receipts of the individual
• Any non-relievable balancing charges (balancing charges under Part 2 of CAA 2001 which are not expended for the purpose of generating receipts of the property business).

The receipts of most individuals’ property businesses will be calculated using the cash basis (see PIM1090). However, an individual can elect to calculate their profits using GAAP.

The conditions when GAAP must but be used for calculating the receipts of a property business are outlined in ITTOIA05/S271A. (See PIM1090).