The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Prior to the 2017/18 tax year, profits and losses were calculated on the accruals basis, unless the gross rental profits did not exceed £15,000, in which case a non-statutory cash basis could be used. If used, the cash basis needed to be used consistently, and the overall result needed to be reasonable and not differ substantially from the amount produced using the accruals basis.
From the 2017/18 tax year onwards, the simplified cash basis is the default method of calculating property income from property businesses. See the Simplified cash basis for unincorporated property businesses guidance note.
The simplified cash basis must be used unless any of the following conditions apply:
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