For those about to let

KEY POINTS

• National Insurance dispute
• Property lettings: trade or investment?
• Provision of other services
• Guidance states property income is not a trade

A recent query in Taxation Renewal refusal from NICked made me sit up as it gave the impression that HMRC had completely changed their view on whether the business of letting property is a trade or an investment.

NICked related the story of a client who based only on the receipt of income from let property had been refused an application for small earnings exception from the payment of Class 2 National Insurance contributions because the profits from the lettings exceeded the exception limits.

HMRC intimated that persons in receipt of “owner-managed properties” would be issued with a questionnaire so that the department could determine whether the...