Rent Payment in advance – Which tax year?Make Text Bigger
If rent is due monthly under the terms of an AST, but the tenant pays 6 months rent in advance then if the time period the advance rent covers straddles a tax year is the full rent recorded in the tax year it is actually received or is it applied pro-rata?
In other words, if 6 months rent is paid in January this tax year, are just Jan/Feb/Mar’s rent reported this year, with Apr/May/Jun being reported next year, or all the full 6 months rent received recorded this year.
Any help on this would be gratefully received. I’ve looked on the HMRC website but can’t see an obvious answer to this question.
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