CT600 Box 190: Property Income Explained

If your company receives rental income or has a property business, you need to report this in Box 190. This guide explains what goes in this box and how property income is taxed.

What is Box 190?

Box 190 on the CT600 is labelled "Income from a property business" (or "Property income").

This box reports income from:

Letting residential property
Letting commercial property
Other property-related income

Property income is separate from trading income and goes in its own section of the CT600.

What Goes in Box 190?

Include:

Rental income from UK property
Rental income from overseas property
Lease premiums received
Other property business income

Do NOT include:

Trading profits (even if your trade involves property)
Property development profits (usually trading)
One-off property sales (capital gains)
Property held as stock (trading income)

Property Business vs Property Trading

This distinction is crucial:

Property Business (Box 190)	Property Trading (Box 165)
Letting properties	Building and selling properties
Passive rental income	Active development for profit
Investment holding	Stock-in-trade
Taxed as property income	Taxed as trading income

Most buy-to-let companies report in Box 190. Property developers usually report in Box 165.

How to Calculate Box 190

Step 1: Calculate Gross Rental Income

Add up all rental income received:

``` Property 1 rent £12,000 Property 2 rent £15,000 Property 3 rent £10,800 Total gross rent £37,800 ```

Step 2: Deduct Allowable Expenses

Subtract allowable property expenses:

``` Gross rental income £37,800 Less: Mortgage interest (£8,000) Less: Repairs (£2,500) Less: Insurance (£1,200) Less: Agent fees (£3,780) Less: Other expenses (£1,500) Net property income £20,820 ```

Step 3: Enter in Box 190

Enter the net property income in Box 190:

Box 190: £20,820

Allowable Property Expenses

You can deduct these expenses from rental income:

Fully Deductible:

Letting agent fees and management costs
Buildings insurance
Ground rent and service charges
Council tax (if landlord pays)
Utility bills (if landlord pays)
Professional fees (accountancy, legal)
Advertising for tenants

Finance Costs:

Mortgage interest (fully deductible for companies)
Loan interest on property purchases
Arrangement fees (may need spreading)

Repairs vs Improvements:

Repairs - Fully deductible (like-for-like replacement)
Improvements - Not deductible (capital expenditure)

Capital Allowances:

Plant and machinery in furnished lettings
Equipment for commercial properties
Not available for residential fixtures

Property Losses

If your property expenses exceed income:

``` Gross rental income £20,000 Less: Expenses (£25,000) Property loss (£5,000) ```

Property losses:

Cannot offset against trading profits
Can carry forward against future property income
Can offset against total profits if you make a claim

For a property loss, Box 190 would be £0, and you'd report the loss separately.

Multiple Properties

If you have multiple properties, they form a single "property business":

``` Property 1: £12,000 profit Property 2: £8,000 profit Property 3: £3,000 loss Net property income: £17,000 ← Box 190 ```

Profits and losses from different properties are pooled.

Box 190 vs Box 300

Two boxes relate to property income:

Box 190	Box 300
Income from property business	Net property income
Before some adjustments	After adjustments
Gross property profit	Final property income

For most simple property companies, these may be the same figure.

Example: Simple Buy-to-Let

Company owns one property:

Annual rent: £18,000
Mortgage interest: £6,000
Repairs: £1,500
Insurance: £500
Agent fees: £1,800

Calculation: ``` Rental income £18,000 Less: Mortgage interest (£6,000) Less: Repairs (£1,500) Less: Insurance (£500) Less: Agent fees (£1,800) Net property income £8,200 ```

Box 190: £8,200

Example: Property Company with Trading

Company has:

Trading profit: £50,000
Rental income (net): £15,000

CT600 entries:

Box 165: £50,000 (trading)
Box 190: £15,000 (property)
Box 410: £65,000 (total profits)

Both income streams are combined for Corporation Tax.

Corporation Tax on Property Income

Property income is taxed at the same Corporation Tax rates as trading income:

Profit Level	Tax Rate
Up to £50,000	19%
£50,001 - £250,000	25% with marginal relief
Over £250,000	25%

These limits apply to total profits (trading + property combined).

Common Mistakes

1. Treating All Property as Trading

Wrong: Putting rental income in Box 165 Right: Rental income goes in Box 190

2. Including Capital Costs

Wrong: Deducting the cost of a new bathroom Right: Improvements are capital, only repairs are deductible

3. Missing Finance Costs

Wrong: Forgetting to claim mortgage interest Right: Mortgage interest is fully deductible for companies

4. Wrong Year for Rent

Wrong: Using cash received instead of rent due Right: Use accruals basis (rent due, not received)

Furnished Holiday Lettings

Furnished holiday lettings (FHL) have special rules:

Treated as a trade (not property business)
Goes in trading profit boxes
Capital allowances available
But: Special FHL rules are being phased out

Check current rules for holiday lets.

When Using TinyTax

TinyTax handles property companies by:

Separating property income from trading
Calculating allowable expenses
Populating Box 190 correctly
Handling multiple properties

Need Help?

Property companies have specific tax rules. TinyTax guides you through reporting property income correctly on your CT600.

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