Property Income

Question 1

Property allowance

Answer 1

£1000

Question 2

If property receipts are < £150,000 use

Answer 2

Cash basis

Question 3

If property receipts are > £150,000 use

Answer 3

Accruals basis

Question 4

Allowable / disallowable expenses (property)
Legal, professional, administrative costs

Answer 4

Allowable

Question 5

Allowable / disallowable expenses (property)
Interest paid related to non-residential property (loan to buy, overdraft interest related to letting)

Answer 5

Allowable

Question 6

Allowable / disallowable expenses (property)
Rates and taxes paid by landlord (council tax, water)

Answer 6

Allowable

Question 7

Allowable / disallowable expenses (property)
ancillary services provided by landlord (cleaning, gardening)

Answer 7

Allowable

Question 8

Allowable / disallowable expenses (property)
Insurance for the property

Answer 8

Allowable

Question 9

Allowable / disallowable expenses (property)
Replacement of furniture /

Answer 9

Allowable to some extent

Question 10

Allowable / disallowable expenses (property)
Repairs and maintenance (painting)

Answer 10

Allowable

Question 11

Allowable / disallowable expenses (property)
Fixed rate deduction for motor vehicles

Answer 11

Allowable - using approved mileage

Question 12

Finance Cost relief is

Answer 12

20% of the lower of
- Finance cost + b/f finance costs
- Property income for the tax year (after property losses)
- Adjusted total income (income exceeding PA)

Question 13

Allowable / disallowable expenses (property)
Finance Costs

Answer 13

Allowable - but not deducted, they are given as a reducer

Question 14

Bad debt relief - accruals

Answer 14

If unpaid and written off, relief is given for the amount written off

Question 15

Allowable / disallowable expenses (property)
Replacement of domestic items

Answer 15

Allowable - only if replacement, not purchase of original item

Question 16

If property loss arises it is

Answer 16

carried forward and set against first available future property income

Question 17

Rent a room relief - to be eligible

Answer 17

accommodation must be furnished and part of the individual taxpayer’s only or main domestic residence

Question 18

Rent a room
if gross rental income < £7500

Answer 18

Income and expenses are ignored, no property losses arise (unless elect to set aside rules and claim loss)

Question 19

Rent a room
If gross rental income > 7500

Answer 19

Normal property income rules apply OR
Tax payer can be assessed under rent a room rules on gross rents over limit of 7500. No relief for expenses..

Question 20

If two or more people share a home (husband and wife/civil partners) each has rent a room relief of

Answer 20

3,750