3. Property Income Flashcards
1
Q
How is property income assessed?
A
On a cash basis, unless >£150,000, the accruals basis has to be used.
2
Q
What are the allowable deductions for properly income?
A
- Incidental expenses
- Repairs
- Rates and council tax
- Rent
- Insurance and maintenance
- Approved mileage allowance
- Replacement furniture relief for like for like replacement
3
Q
What is the proforma for property allowance?
A
Total property income. X
Less: allowable expenditure. X
Assessable property income X
4
Q
What is the property allowance?
A
- Gross receipts of less than or equal to £1,000, automatically receive a properly allowance of £1,000. Income doesn’t need to be declared to HMRC.
- Gross receipts of more than £1,000, property products are calculated the usual way. Can choose to disregard expenses and deduct a property allowance of £1,000 instead.
5
Q
What order does loss relief have to be used for property income?
A
Current year, then carried forward until they are used up.
