Anyone who is in receipt of income from lettings, whether it is from a house, flat, factory or office etc… needs to prepare rental accounts.
There are various types of rental income:
- Income from letting a house, flat, apartment, office, building and from bare land.
- Income from an easement, i.e., if payment is received for the right to erect advertising signs, communication transmitters, or the grant of a right of way or a way-leave.
- Income arising from the grant of sporting rights, such as fishing and shooting permits.
- Payment made by a tenant to defray the cost of work of maintenance or repairs to the premises, which is work not required by the lease to be carried out by the tenant.
- Certain reverse premiums.
- Income arising from a conacre letting.
- Service charges in respect of services ancillary to the occupation of property.
- Insurance recoveries under policies providing cover against non-payment of rent.
- Premiums and other similar sums received on the grant of certain leases, normally on non-residential property, i.e., a shop or warehouse that requires the payment of a premium by the tenant to the landlord. Where a lease of less than 50 years is granted some of the premium charged will be treated as rent.
Finding it difficult or time consuming to prepare your own rental accounts? We’d be delighted to assist you, contact us on 021 4641400 or email firstname.lastname@example.org.