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Oceana granted a 23 year lease on a warehouse to Lena for £42,000 on 1 September 2020.
What is the property income assessable on Oceana for the tax year 2020/21?
The answer given in exam kit is
Premium 42000(-) 42000*2%*22 = 23520
My question is
Shouldnt the answer be 23520*7/12? ie 13720
Pls help .
No – there is no time apportionment regarding the premium received – the amount assessed is the same whatever date in the tax year the premium may be received. See the OT study notes Chapter 3 Section 6 with accompanying lecture
Ok sir thanks