Calculating property income

1. Mindmap

2. [Capital expenditure](https://library.croneri.co.uk/po-heading-id_kWPLuiScHEyZWTr9AIo40g)

2.1. Accruals basis

2.1.1. No deduction

2.1.2. CAs in limited circumstances

2.1.3. RDIR

2.2. Cash basis

2.2.1. Deduction subject to exclusions

3. [Trade rules](https://library.croneri.co.uk/po-heading-id_Iz6Yl91qAkGmIqXy3r-TXQ)

3.1. Wholly & exclusively

3.2. Personal expenditure

3.3. [Differences between accruals and cash basis](https://library.croneri.co.uk/body-node-15252-81FAD27B)

3.4. Lease premiums paid / received

4. [Finance costs](https://library.croneri.co.uk/po-heading-id_Uu8JCzHMAk6jnWhyH27fAw)

4.1. Wholly & exclusively?

4.1.1. Commercial basis?

4.2. Restrict to BR

4.2.1. Individual only

4.2.2. Residential only

4.2.3. Tax reducer at 20%

5. [Cash basis the default for most](https://library.croneri.co.uk/WKID-202502171132540215-02610246)

5.1. BUT NOT IF income (on the cash basis) in a tax year is over £150,000

5.2. OR there is a balancing adj on Business Property Renovation Allowances

5.3. OR taxpayer elects for accruals before filing date of return

6. [Basis periods](https://library.croneri.co.uk/WKID-202502171328080580-17240791)

6.1. Unincorporated

6.1.1. Unincorporated business assessed based on tax year

6.1.2. Time-apportion tax-adjusted results unless accounting date 31 March - 5 April inclusive

6.2. Incorporated

6.2.1. Assess based on accounting periods