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Posted Wed, 04 Oct 2023 19:28:39 GMT by
Hi, 1. If I receive rental income £12000 on 1 Nov 2022 , which is the upfront payment for 1 year rent for (£1000 per month), using the traditional accounting basis, I only need to report £5000 rental income (for Nov 22 - Mar 23) in my tax return for 2022-203, am I correct? 2. How to convert other allowable property expenses that are in foreign currencies? For example, air tickets bought in Taiwanese dollars.
Posted Tue, 10 Oct 2023 11:40:50 GMT by HMRC Admin 17

Thank you for your question. 

While since 2017-18 the Cash Basis  is the default position for reporting profits and losses you can if you wish choose to use the traditional basis. 

If you do choose to use that basis then you would report the actual income earned in the year regardless of when it was due or paid. 

More informtion about this can be found in our Proprty Income Manual at :

Property Income Manual  .

As regards converting expenses in foreign currencies you should if possible use the exchange rate at the time the expenses was incurred. 

If this is not possible, however, it would be acceptable to use the average exchange rate for the year in question
these can also be found on our website at :

HMRC yearly average and spot rates  .

Thank you.

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