11.3.1 Basis of assessment

The normal rules determining the basis of assessment for the various categories of income apply, as below.

Rental income

The profits of an unincorporated property business are computed in the same way as business profits. However, the cash basis automatically applies to the computation of profits of an unincorporated property business if turnover does not exceed £150,000, although an election to use GAAP (i.e. accruals basis) accounting may be made. Whether the cash or GAAP basis is adopted may affect whether rental income is subject to income tax in the period prior to the date of death or thereafter.

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