Which tax year to assign rental income?

weanie

My daughter is in the process of renting out a house and has agreed to accept 6 months advance rent from a new tenant. It would be preferable to assign the payment to the present tax year in her case.
Is she allowed to do so?
Many thanks

pjclar02

Hello there

The rent has to be attributed to the year in which it is "earned", and is therefore on an "accruals basis". So if the tenants have paid for 6 months, say from March to August 2012, only 1/6th of the receipt will be brought into the 2011/12 tax return, the balance will be chargeable next year.

Hope this helps.