Tx notes fa22 Final

June 2023 to March 2024 exams
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Illustration 6 
Jensen has always been UK resident spending about 10 months of the year in the UK, but on 1 May, 
2021 he purchased an apartment overseas where he lived for most of the tax year returning to the 
UK for a further 50 days in 2022/23 when he stayed at the family home with his wife and children. 
Jensen has spent more than 15 days in UK in 2022/23 so will not be automatically not resident. He 
will also not be automatically resident in the UK as he has not spent 183 days in the UK nor does he 
have his only home in the UK.
As he was in the UK for between 46 and 90 days he will remain resident for 2022/23 as he has 3 UK 
ties:
•
Spouse/children in UK
•
A house in the UK that he uses
•
In the UK for more than 90 days in previous 2 years
You should then attempt Practice Questions 1-4 which you will find after the Answers to 
Examples Section at the end of these Study Notes. 

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June 2023 to March 2024 exams
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Chapter 3
PROPERTY INCOME AND 
INVESTMENTS – INDIVIDUALS 
1. Property Income liable 
The following income is liable to assessment as property income:
(a)
rents under any lease or tenancy agreement
(b)
premium received on the grant of a short lease
1.1. Basis of assessment 
Income from land and buildings prior to 2019/20 was computed for individuals as if the letting of 
property was a business, and the amount assessable in the tax year was computed as the rental 
income accrued less allowable expenses incurred - the accruals basis.
From 2019/20 a simple cash basis is now usually applied and in an exam question should be 
assumed to apply unless specifically stated to the contrary - a taxpayer may choose to use the 
accruals basis , but must use the accruals basis where property income receipts exceed £150,000.
Therefore on the cash basis the assessment will now be rental income received less allowable 
expenses paid.