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