Cash basis is a simpler way of working out your property business profits or losses.
You add up all your property income received (your turnover) and take off any allowance expenses paid in the year. Don’t include money you owe or owed to you after 5 April 2020.
You can only use cash basis if your total income from foreign property (including FHLs in the EEA) is up to £150,000.
If you have income from a foreign property and an FHL in the EEA, you must use the same accounting practice for both incomes. Box 14.2 on the Foreign Income Page and box 5.2 on the Property Page must both be either present or absent.
1. Click on '+ NEW PAGE' and then select 'Foreign Income (SA106)'
2. Fill in the required boxes and then click 'SAVE'
3. Click on '+ INCOME'
4. Select 'Land and property abroad' from the drop-down list of sources of income
5. Select 'Yes' to the question 'HAVE YOU USED CASH BASIS TO CALCULATE YOUR INCOME AND EXPENSES (BOX 14.2)'
6. After you have filled in the required details, click 'SAVE' at the bottom