One of my btl properties was damaged by fire during the 08/09 tax year.
The refurbishment began in January 09 and I received an interim payment from the insurance company also in January 09
The work will not be finished until next month.
Final settlement payments from the insurance company and payments for lost rent will be received next month.
As the refurbishment has taken place in the 08/09 and 09/10 tax year how do I account for this...?
Do I account for it in the 08/09 year as this is when the incident was incurred, or do I apportion the insurance payout and refurbishment costs into both tax years...?
Any advice would appreciated