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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 6 years ago by Tax Tutor.
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  • August 18, 2019 at 6:45 pm #528035
    elpe
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    Hi, in the third lecture for property income in example 5 it says that ‘Bill grants Richard a lease to a shop on 30 June 2018’ and that the ‘annual rent £5,000 is due on 1 July 2018’ and in the solution it’s not assumed that he had the house for 9 months only for the tax year 2018/19. Shouldn’t the rent be calculated as 5,000*9/12?

    August 21, 2019 at 4:11 am #528302
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    From 2018/19 the basis of assessment for rental income is the amount received in the tax year – not the accruals basis.

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