Client has built block of 11 flats.. started Aug 05.. finished April 06.... sold 10 over period May 06 - Nov 06 and 1 still unsold.... what % completion and % of expected profit (if any) would you recognise in March 06 accounts for taxable income in 05-06?
Paul Gillham
Replies (1)
Please login or register to join the discussion.
Probably none
There would only be revenue to recognise if:
a) the property was being developed as part of a contract (ie for a known buyer) or
b) where any individual flats were sold and contracts were exhanged before the year end.
From the question I assume that this was a speculative development so a) won't apply.