Foreign Income/UK Property 28 - Traditional accounting

Select 'Yes' if you used traditional account rather than cash basis to calculate your income and expenses.

Cash basis is a simpler way of working out your property business profits or losses. You add up all your property income received, your turnover, and take off any allowable expenses. Do not include money you owe or owed to you after 5 April 2021.

You can only use cash basis if your total income from UK property, including Furnished Holiday Lettings (FHL) in the UK, or income from foreign property, including FHLs in the EEA, is up to £150,000.

If you have income for an FHL in the UK and UK property income, you must use the same accounting practice for both incomes.

If you have income from FHL in the EEA and income from foreign property, included in the foreign section, you must use the same accounting practice for both incomes.

For more information about cash basis, go to Income Tax when you let property: work out your rental income.

Transitional adjustments

If you changed accounting practice for the 2020 to 2021 tax year, you may need to make a transitional adjustment.

All transitional receipts must be must be included in 'Income from furnished holiday lettings, amount of rent and any income for services provided to tenants' and all transitional expenses must be included in 'Other allowable property expenses'.