Statute Details
- Title: Apportionment Act 1928
- Act Code: AA1928
- Type: Act of Parliament (Singapore)
- Long Title: “An Act for the better apportionment of rents and other periodical payments.”
- Key Purpose: Provides rules for apportioning “rents and other periodical payments” by time (day-to-day accrual) and sets out when apportioned sums are payable and how they may be recovered.
- Key Sections: Sections 3–5 (accrual, payment timing, and remedies), with exclusions in Sections 6–7.
- Current Version Reference: Current version as at 26 Mar 2026 (incorporating amendments up to 1 Dec 2021 in the 2020 Revised Edition).
What Is This Legislation About?
The Apportionment Act 1928 addresses a practical problem that arises whenever income is paid periodically—especially rent—under a contract, lease, or other instrument, but the entitlement to that income changes part-way through a period. Typical scenarios include a tenant’s death, a landlord’s death, or the termination of an interest part-way through a rental period. Without a statutory rule, parties may argue over whether the “whole” period’s rent (or other periodical payment) is due, or whether only the portion relating to the time during which a party held the relevant interest should be payable.
In plain language, the Act creates a default legal approach: certain types of periodical payments are treated as accruing “from day to day”, and therefore can be apportioned according to time. This ensures that, where an entitlement changes, the parties (and their estates) can recover the correct time-based share rather than being forced into an all-or-nothing outcome.
The Act is particularly relevant to property practitioners, estate administrators, and litigators dealing with rent disputes, income apportionment, and recovery of sums where interests determine (for example, by death or re-entry). It also contains important exclusions: it does not apply to annual sums payable under policies of assurance, and it can be displaced where the parties expressly stipulate that no apportionment shall take place.
What Are the Key Provisions?
Section 2 (Interpretation): The Act defines key terms to ensure it applies to the intended categories of payments. “Annuities” includes salaries and pensions. “Rents” includes all periodical payments or renderings in lieu of or in the nature of rent. “Dividends” is defined broadly to include payments made under the name of dividend, bonus, or otherwise out of the revenue of trading or other public companies, and it treats the revenue as accruing by equal daily increment during the relevant period. Importantly, the definition of dividends excludes payments that are in the nature of a return or reimbursement of capital. These definitions matter because the Act’s apportionment mechanism depends on whether a payment falls within the statutory categories.
Section 3 (Rents, etc., to accrue from day to day): This is the core rule. The section provides that all “rents, annuities, dividends and other periodical payments in the nature of income” are considered as accruing from day to day, “like interest on money lent”. The practical effect is that apportionment is time-based: if a payment relates to a period (for example, a month or quarter), the law treats the entitlement as building up daily across that period. This default accrual rule supports apportionment “in respect of time accordingly.”
For practitioners, this means that where a dispute arises about whether a party is entitled to a portion of rent or another periodical payment for part of a rental period, the Act supplies a presumption that the income accrues daily. This is especially useful where the contract or instrument is silent or unclear on apportionment.
Section 4 (Apportioned part payable when next entire portion due): Section 4 addresses timing. Even though the apportioned part is determined by time, the Act does not necessarily require immediate payment at the moment the entitlement changes. Instead, it provides that the apportioned part is payable or recoverable when the “next entire portion” becomes due—subject to two scenarios.
First, for a continuing rent, annuity, or other such payment, the apportioned part becomes payable when the entire portion of which it forms part becomes due and payable, and not before. Second, for a payment determined by re-entry, death, or otherwise, the apportioned part is payable when the next entire portion would have been payable if the payment had not been determined, and not before. This structure prevents premature recovery and aligns the apportioned claim with the payment schedule under the instrument or the ordinary due date.
In practice, this can affect when a landlord (or a tenant’s estate) can sue for recovery. It also interacts with limitation periods and enforcement strategy: a claim for an apportioned share may be premature if brought before the statutory due timing.
Section 5 (Remedies for recovering apportioned parts): Section 5 is the enforcement provision. It provides that persons (and their executors, administrators, and assigns) whose interests determine with their own deaths have the same remedies to recover apportioned parts as they would have had for recovering the entire portions, had they been entitled to the whole. This ensures that estates are not disadvantaged and that the right to recover apportioned income survives through the estate administration process.
Section 5(2) addresses a more nuanced situation involving rent “reserved out of or charged on lands or tenements.” It states that the liable party and the land/tenement should not be resorted to “specifically” for an apportioned part forming part of an entire or continuing rent. Instead, the entire or continuing rent (including the apportioned part) should be recovered and received by the person who would have been entitled to the entire rent if it were not apportionable. The apportioned part is then recoverable from that person by the executors or other parties entitled under the Act, by suit.
This is a significant procedural allocation of responsibility. It prevents fragmented enforcement against the land or tenement for partial sums and channels recovery through the person entitled to the whole rent, with subsequent internal recovery of the apportioned share. For litigators, this affects pleadings, parties to the action, and the theory of recovery.
Sections 6 and 7 (Exclusions): The Act is not universal. Section 6 excludes “annual sums made payable in policies of assurance of any description” from being apportionable under the Act. This reflects the different legal character of insurance-related payments and avoids unintended consequences in insurance arrangements.
Section 7 provides that the Act does not extend to cases where there is an express stipulation that no apportionment shall take place. This means parties can contract out of the statutory apportionment default, provided the exclusion is clearly expressed. Practitioners should therefore review leases, tenancy agreements, annuity arrangements, and other instruments for express “no apportionment” clauses, as these may override the Act.
How Is This Legislation Structured?
The Apportionment Act 1928 is short and structured around seven sections:
- Section 1: Short title.
- Section 2: Interpretation—definitions of “annuities”, “dividends”, and “rents”.
- Section 3: The day-to-day accrual rule for apportionable periodical payments.
- Section 4: Timing rule for when apportioned parts become payable or recoverable.
- Section 5: Remedies and procedural guidance for recovery, including estate-related rights and rules for rent charged on land.
- Section 6: Exclusion for annual sums under policies of assurance.
- Section 7: Exclusion where parties expressly stipulate no apportionment.
Notably, the Act does not create a comprehensive code for all apportionment scenarios; rather, it supplies targeted default rules for specific categories of periodical payments and key enforcement mechanics.
Who Does This Legislation Apply To?
The Act applies to “persons” who are entitled to, or liable for, apportionable periodical payments—particularly rents, annuities, dividends, and similar income-like payments. It also explicitly extends to executors, administrators, and assigns, reflecting that apportionment disputes frequently arise in estate contexts.
Section 5(1) is especially relevant where interests determine with death, ensuring that estates can recover apportioned parts. Section 5(2) further applies to situations where rent is reserved out of or charged on land or tenements, affecting how recovery actions should be structured. However, the Act’s scope is limited by Sections 6 and 7: insurance policy annual sums are excluded, and parties can contract out through express stipulation.
Why Is This Legislation Important?
The Act matters because it provides a predictable, time-based default rule for apportioning income. In property and commercial practice, disputes often arise when a lease ends mid-period, when a party dies, or when a payment obligation is determined by re-entry or other events. By treating relevant payments as accruing daily, the Act reduces uncertainty and supports equitable outcomes.
From an enforcement perspective, Section 4’s “next entire portion due” timing rule is crucial. It prevents parties from demanding immediate payment of apportioned sums at the moment of termination or death, and it aligns claims with the payment cycle. This can influence litigation strategy, including whether a claim is premature and how damages or recovery should be framed.
Section 5 is equally important for practitioners. It clarifies that estates and successors have remedies equivalent to those available for the entire payment, and it provides a procedural pathway for rent charged on land/tenements. This reduces the risk of misjoinder or ineffective enforcement attempts against the wrong party or asset. Finally, the exclusions in Sections 6 and 7 require careful document review: insurance arrangements and “no apportionment” clauses can significantly alter the outcome.
Related Legislation
- Apportionment Act 1928 (consolidated/current version references)
- Apportionment Act 1928 (legislative history and revisions)
Source Documents
This article provides an overview of the Apportionment Act 1928 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.