Rent paid upfront, rental spans tax years.

[theartfullodger]

Doing the wife's tax return.. (ooppsss!!! helping the wife complete her tax return...).

Never had this issue before so if it's a common easy question, apologies.

She's just sold MiL's old home and it was rented for 6 months to 31/05/2013. The rent was all paid upfront, 6 month's worth, all into her (& SiL's, joint ownership) in 2012/2013 bank account. Is there any way she can declare all that rental income in 2012/2013 or do we have to do part 2012/2013, rest 2013/2014???

Regards & thanks in advance

[King_Maker]

It depends which basis is being used - accruals or receipts (for small cases).

[Gordon999]

I think you have the choice of declaring 6 months rent in 2012/2013 because rent money was paid upfront.

Alternatively you can apportion rent and expenses 4 month in last year ( 2012/2013 )return and 2 months this year's return ( 2013/2014) .