Personal Tax - Green Light question error?


My Personal Tax exam (AQ2013) is tomorrow and I'm working through the Green Light tests.

I got one question wrong on the Property Income topic (question reference: 5595), but I just wanted to double check the answer because it's different to how I've been learning this topic. The question is:

Alan owns two houses, which he rents out to tenants.

House A is let at £1,500 per month and was let for the whole of 2016/17. House B is let at £750 per month.

The tenants for House B moved in on 1 October 2016 but moved out suddenly in the beginning of March owing the rent for January, February and March.

What is the taxable rental income for 2016/17?

The answer is apparently £20,250, but this doesn't seem to take the accruals basis of property income into account? The tenants for House B haven't yet paid the rent for January, February and March, but shouldn't this rent still be included in the tax computation?


  • AlisonSwanson
    AlisonSwanson Registered, Tutor Posts: 209
    You only accrue for rent receivable if it is likely to be received. This question suggests that the tenants have done a runner, in which case the 3 months rent can be written off.
  • RosieCarlisle
    RosieCarlisle Registered Posts: 60
    Thanks for your answer. Would this count as a deductible bad debt, then, even if it's not specifically stated as such?
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