Taxation of 7 months rent in advance?

I may have a ossible answer to this query.
We have been dealing with an estate where the property was let in October 2019 to a Chinese national who could not supply financial references so the full year’s rent was paid in advance. The owner (a 40% taxpayer)sadly died in the November.
We had to do a tax return for 2019/20 and 2020/21 and the accountant successfully argued with HMRC that even though the rent had been paid in advance there was a possibility that the tenancy could be interrupted, for instance, if the house was damaged by fire and thus the income was attributed to both years and only 28% was payable on the 2020/21 income.
Of course, HMRC may have a different view if the owner is still alive!

Reply to the comment left by Mike at 29/01/2021 – 11:20
This happened to me. The agent took 6 months payments without telling me. I refused to accept the lump sum and directed the agent to pay me monthly. There were no issues with HMRC.

Reply to the comment left by Bill at 30/01/2021 – 09:43Bill – Did you check with the HMRC that you were doing the right thing? Or perhap the payment did not cross a tax year end date in which case it make no difference tax-wise

Reply to the comment left by at 30/01/2021 – 10:27
It crossed a tax year and was OK with my accountant.

Reply to the comment left by at 30/01/2021 – 10:27
This also begs the question as to what the situation is if the agent takes 6 months upfront without your knowledge and drip feeds it to you monthly?

Reply to the comment left by Bill at 30/01/2021 – 10:37
Hi Bill – and was your accountant using traditional accounting methods where the rent is proportioned between the two tax years or doing your accounts on a cash basis? If the latter did he check the rules on re PIM1094? If he did not then he does not know all the rules about renting property. There are very few accountants, if any, which can afford to specialize in doing rental accounts for small landlords. A lot know most of the rules but not all. Some think for example that you cannot claim for the replacement of white goods only repairs to them. They think replacing them is capital expenditure which is not tax deductible. I have always preferred to do my own accounts, find out all the rules and the wrinkles, even sometimes phone HMRC for advice. If your turnover is below 150,000 doing your own accounts on a cash basis is easy-peasy. Just set up a simple spreadsheet with all the box numbers directly corresponding to the box number on the HMRC Property Income pages.

Reply to the comment left by at 30/01/2021 – 11:09I have really no idea, why should I. My accountants in UK and Cyprus deal with all that, that is what I pay them for. So stop your barrack room nit picking. It is done, dusted and agreed and I have no interest in your esteemed opinion. Also the fast that I live in Cyprus, pay tax in both countries under the double tax treaty agreement does tend to make my tax affairs a little more difficult than easy peasy.

Reply to the comment left by at 30/01/2021 – 11:09
“Some think for example that you cannot claim for the replacement of white goods only repairs to them. They think replacing them is capital expenditure which is not tax deductible.”
Wow! Yet another example of people who should never have been trained in the first place!

Reply to the comment left by Bill at 30/01/2021 – 09:43
Did you actually ask HMRC, or just assume that it was ok? If the latter (as I suspect) that does not make it right. It is potentially tax evasion.

Reply to the comment left by Bill at 30/01/2021 – 11:19
That sounds like an unnecessarily hostile response.