Calculating property income (2026)

1. Mindmap

2. [Trade rules](https://library.croneri.co.uk/po-heading-id_Iz6Yl91qAkGmIqXy3r-TXQ)

2.1. Wholly & exclusively

2.2. Personal expenditure

2.3. [Differences between accruals and cash basis](https://library.croneri.co.uk/body-node-15252-81FAD27B)

2.4. Lease premiums paid / received

3. [Cash basis the default for most](https://library.croneri.co.uk/WKID-202502171132540215-02610246)

3.1. BUT NOT IF income (on the cash basis) in a tax year is over £150,000

3.2. OR there is a balancing adj on Business Property Renovation Allowances

3.3. OR taxpayer elects for accruals before filing date of return

4. Property income surcharge

4.1. **20% to 22%, 40% to 42%, and 45% to 47% for basic, higher, and additional rates of tax respectively, for income tax from 6 April 2027.**

5. [Finance costs](https://library.croneri.co.uk/po-heading-id_Uu8JCzHMAk6jnWhyH27fAw)

5.1. Wholly & exclusively?

5.1.1. Commercial basis?

5.2. Restrict to BR

5.2.1. Individual only

5.2.2. Residential only

5.2.3. Tax reducer at 20%

6. [Capital expenditure](https://library.croneri.co.uk/po-heading-id_kWPLuiScHEyZWTr9AIo40g)

6.1. Accruals basis

6.1.1. No deduction

6.1.2. CAs in limited circumstances

6.1.3. RDIR

6.2. Cash basis

6.2.1. Deduction subject to exclusions

7. [Basis periods](https://library.croneri.co.uk/WKID-202502171328080580-17240791)

7.1. Unincorporated

7.1.1. Unincorporated business assessed based on tax year

7.1.2. Time-apportion tax-adjusted results unless accounting date 31 March - 5 April inclusive

7.2. Incorporated

7.2.1. Assess based on accounting periods