Rent goes away...

Rent goes away...

Didn't find your answer?

For 5 years, the client has run a shop as a sole trader in a shopping centre. He hasn't actually paid rent in that period, but there is a provision in the accounts each year.

Following a court case against the owner of the centre in late 2003 - in which this was only one of the issues - part of the settlement was that the rent for the period is no longer payable.

Should past tax returns be re-opened, or can the whole amount (£31,000) be dealt with in the 2004 return?

My inclination is to say that the earlier returns correctly reflected the position as it stood at the time, and that therefore they should not be re-opened, but I would appreciate comments.

Brian

Replies (1)

Please login or register to join the discussion.

avatar
By AnonymousUser
25th Jan 2005 13:17

I agree
You are right. Those returns were correct at the time. Release the provision now.

Thanks (0)