Jennifer Adams considers the tax implications for landlords when a tenant leaves.
All sources of rental income, be they commercial or residential lettings, furnished or unfurnished, or holiday lettings, are regarded as being derived from the same single property rental business (except for EU lettings, which are separate activities).
Therefore, just because a tenant leaves, this does not necessarily mean that the rental business ceases. A rental business ceases when the last let property in a portfolio has been disposed of, including being gifted (assuming a portfolio of two or more properties).
Should the business comprise one property, a letting business ceases when the last tenant leaves and the landlord decides not to re-let, deciding to sell or live in the property as their main residence, or the property is otherwise taken out of the business (e.g., the landlord may decide to become a trader or
