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Where Taxpayers and Advisers Meet

Property income for Self Assessment - query?

JOHNRE
Posts:91
Joined:Sat Feb 06, 2016 2:03 pm
Property income for Self Assessment - query?

Postby JOHNRE » Sat Apr 08, 2017 8:12 pm

Hi, looking for some advice.
My wife owns an apartment and has been renting it out, via an Letting agent, since June 2016. She has started to do her 16/17 tax return today and we are not sure what she should be putting in for her income from property.

Basically, is it the full value of the rent in the 10 months in the tax year - £12,000 - or is it the money she actually apreceived from the Letting Agent after they had taken their 8%?

Many thanks!

John

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Property income for Self Assessment - query?

Postby bd6759 » Sun Apr 09, 2017 12:21 pm

Her income will be the full 10 momths rents.

The agent's commission is an allowable expense which is then deducted to arrive at the taxable profit.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Property income for Self Assessment - query?

Postby maths » Sun Apr 09, 2017 9:05 pm

Rent needs to be accounted for on an accruals basis unless gross rents for tax year are £15,000 or less in which case cash basis allowed.

Changes proposed for tax year 17/18 and later.


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