Property Income (3)

Question 1

Allowable against property income for a house which doesn’t qualify as an FHL?

Answer 1

Equivalent model of sofa - disposal proceeds

Question 2

When does a security deposit only become a receipt (deductible)?

Answer 2

When resident is legally entitled to retain some or all of it at the end of the tenancy

Question 3

Driven in own car in relation to the letting? (Approved mileage allowances allowable)

Answer 3

Drove miles in own car * 45p

Question 4

Interest relief?

Answer 4

Deducted in income tax calculation as interest relief. By 20%

Question 5

An improvement?

Answer 5

Is not deductible as it is not a repair

Question 6

Difference between cash and accruals basis?

Answer 6

Accruals basis: Expenses incurred in the same period are deductible irrespective of date when they were paid

Question 7

Deductible expense (repairs)

Answer 7

Repairs to the property

Question 8

Deductible expense (agent)

Answer 8

Agent fees

Question 9

Capital expenditure and deductibability?

Answer 9

Not deductible

Question 10

Deductible expense (insurance)

Answer 10

Insurance

Question 11

Deductible expense (rent)

Answer 11

Rent payable where a alandlord is renting the property which they in turn let to others

Question 12

Amount deductible in a lease premium equation?

Answer 12

Property income assessment on lessor / Life of lease

Question 13

Where accommodation is owned by the employer and cost exceeds £75,000? If owned for six years or less before being first made available:

Answer 13

Charge = (cost – £75,000) × official rate of interest at 6 April

Question 14

Where accommodation is owned by the employer and cost exceeds £75,000? If owned for more than six years before being first made available:

Answer 14

(Open market value - £75000) * 2.25%

Question 15

Capital improvements in additional benefit?

Answer 15

Added

Question 16

Benefit of transfer of used asset greater of?

Answer 16

Market value at date of transfer

Original market value - annual use benefits assessed to date

Question 17

When an accomodation is job related (taxable benefit)?

Answer 17

Taxable benefit lower of 10% net earnings and expenses

Question 18

Where does finance cost restriction (20% interest deduction) not apply?

Answer 18

Not apply to commercial properties or FHL