Property income

Question 1

What area of income is Property income

Answer 1

NSI

Question 2

Property income amount included in tax return formula

Answer 2

Rental income received - allowable rental expenses paid

Question 3

8 Allowable deductions

Answer 3

Insurance, Finance costs relating to non residential properties, Legal and professional costs, Rates and taxes paid by landlord, Ancillary services, Repairs and maintenance, Fixed rate deductions for motor vehicles, Bad debts`

Question 4

4 things capital allowances are available on

Answer 4

Plant & machinery used for repairs, Motor vehicles used in business, Replacing domestic items, Replacing fixtures

Question 5

2 things capital allowances are not available on

Answer 5

Initial purchase of furniture, Improvements

Question 6

What is tax relief for finance costs calculated based on

Answer 6

20% of the lower of finance costs, property business profits, adjusted total income

Question 7

Property allowance available for individuals

Answer 7

£1000 - state whether preferrable or not depending on their property income

Question 8

2 options if gross income is more than rent a room limit

Answer 8

Rent a room relief or Normal calculation with subtracting expenses. State in answer which is preferrable