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Posted 3 months ago by bestofboth333
Hello, I'd like to know how to treat the following expense under the cash basis:
Ground rent expense for entire 23/24 year, paid on April 15th 2023. The rental did not commence until 1st December 2023.
Should i include the expense (as it was paid during the tax year) but pro-rate for the part of the year that the property was rented?
Posted 2 months ago by HMRC Admin 13 Response
Hi bestofboth333
As per PIM2505 - Beginning and end of a rental business: commencement - HMRC internal manual, a business cannot begin until the first property is let. 
As the service charge covers the period 1st December 2023 to 5th April 2024, you would apportion the expense incurred for the time the property was being let. 
Thank you
 

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