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property income

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › property income

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarTax Tutor.
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  • May 10, 2016 at 7:07 am #314371
    Avatarsasha
    Member
    • Topics: 99
    • Replies: 141
    • ☆☆☆

    property A is let furnished for an annual rent of 5000 payable quarterly in arrears from 1 july 2014. the tenants were late in paying the amount due on 31 march 2015. this was not received until 15 april 2015.

    aren’t we supposed to deduct impairment loss? we have not received that amount in tax year.

    in book wear and tear allowance is directly calculated on 3750.

    May 15, 2016 at 5:11 pm #315196
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3960
    • ☆☆☆☆☆

    There is no impairment it is just a late payment – we use the accruals basis in assessing rental income – thus 9/12 x 5,000 irrespective of when the rent falls due or when it is received! Thus the wear and tear allowance is based on 3,750

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