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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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If a landlord takes rent upfront for a tenancy in the

Customer Question

If a landlord takes rent upfront for a tenancy in the following tax year can this income be declared in the following tax year when the tenancy took place or does it have to be declared within the tax year it was received.
Submitted: 4 months ago.
Category: Tax
Expert: replied 4 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert: replied 4 months ago.

Thank you for your question.

You would declare rental income due in the tax year and not what is received. The accounting concept of matching income to expenses is followed when preparing property income accounts.

If the tenant has made a payment upfront to cover the whole of the tenancy and only six months fall in current tax year then your accounts should show 6 months rental income in this year.

I hope this is helpful and answers your question.

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