Property Income Flashcards
Property Income
What is a UK Property Business?
A Business Which Generates Income From Land in The UK.
Property Income
What is The ‘Default’ Method For Calculating Property Profits?
The Cash Basis.
Property Income
When Are Security Deposits Recognisable as Receipts?
If The Landlord Becomes Legally Entitled to Retain The Deposit at Tenancy End.
Property Income
To be Incurred, Expenses Must be:
‘Wholly & Exclusively’ For The Letting Business.
Property Income
What Rule Applies to The ‘Flat Rate’ Expense Method?
Must be Claimed Consistently Year-on-Year.
As Long as The Vehicle Remains in The Business.
Property Income
Revenue Expenditure May be Recognised as Capital Expenditure in Order to:
Make The Property Suitable For Letting.
Property Income
Which Property Let Can Claim Replacement of Domestic Items Relief?
Residential Properties.
(Excl. FHLs)
Property Income
Replacement of Domestic Items Relief Covers The Cost of:
- A ‘Similiar Standard’ Replacement; and
- Any Incidental Expenditure Disposing The Decrepit Asset.
Property Income
How is Interest on a Loan Treated For:
* Commercial & Furnished Holiday Lets?
* Residential Properties?
- Deductible in Full Against Rent
- Eligible For Basic Rate Relief as a Reduction in The Tax Liabilty
Property Income
What is a Nominal Lease?
A Landlord Who Doesn’t Charge Full Market Rent.
Losses Aren’t Allowable in This Scenario.
Property Income
How Does Rent-a-Room Relief Apply For Joint Owners?
Equally.
Even if Rents Are Apportioned Differently.
Property Income
What is The Property Allowance?
£1,000.
(Per Person)
Property Income
If an Individual’s Gross Property Income is Less Than £1,000:
- There is No Charge to Income Tax
- Notification of The Property Business to HMRC is Not Required
Property Income
When Can The Property Allowance Not be Claimed?
Relief on Loan Interest is Obtained.
(Applied Year-on-Year)
Property Income
What is The ‘Letting’ Condition?
A Property Must Actually be Let For 105 Days.
(As Holiday Occupation)
