Property Income Flashcards
when can you use the cash basis for property income
on less than £150,000
is a rental deposit treated as income
no, unless the landlord states they will be keeping it
3 examples of deductible property expenses
cleaning costs ( not for landlord)
letting agents fees
repairs
how much of interest paid is deductible from the property income
25%
what do you do with the remaining 75% of interest from property income
20% of it can be deducted from the individuals income tax liability
what is the amount of relief you get on the expenditure of a replacement asset
new replacement cost - proceeds from selling the old asset
what are the 4 rules for accomodation counting as furnished holiday letting
it is available for commercial letting for no less than 210 days
it is actually let for at least 105 days
tenants dont generally stay for over 31 days and never more than 155 days in a tax year
Its located in the EEA
what are the 4 advantages of having a furnished holiday let
no finance cost restrictions
capital allowances on furniture
income as treated earned income
capital gains tax rollover relief
whats for the formula for trading income deduction for traders
property income assessment on landlord/ life of lease
how much property income is exempt for a tenant renting a room
7500
what are the choices you have when claiming rent a room relief which is over 7500
either total rent received - rent expenses
or
assessed on just the excess of 7500 with no expense deduction
