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Surplus business accommodation

In certain circumstances, rental income from the letting of surplus business accommodation can be treated as arising from the trade, as opposed to being treated as property income.

This will be the case where:

1. •

   the premises being let are temporarily surplus to requirements

2. •

   the let premises are part of a building in which another part is being used in the trade, and

3. •

   the letting receipts are relatively small

Pre-trading expenditure

Expenses incurred in the seven years before the commencement of a trade are treated as incurred on the first day of trading. Such expenses will be deducted from profits in the first accounting period, provided they are allowed under normal rules (ie they must not be capital in nature and they must be incurred wholly and exclusively for