This short article looks at aspects of commercial property rental.
This article looks at the types of expenses incurred in running a residential property business and what can be deducted from profits to calculate income tax. If an expense can be deducted from profits to calculate tax, it is called an allowable expense. It can also be called deductible or revenue expenditure.
From 6 April 2017, the cash basis became the default basis for individual landlords with less than £150,000 of rental receipts in a year.
However landlords may opt to continue to use the accruals basis.
From 2017/2018 tax year onwards, the default accounting method for calculating income from property, be it commercial or residential property, is the cash basis.