Property Income Liable Flashcards
Which forms of income are liable?
Rent
Premium received on the grant of a short lease
When is it mandatory to use accruals basis for property income
When it exceeds £150,000
When is a deduction liable?
When an expense has been incurred wholly and exclusively in connection with a business
Examples of deductible expenses (1)
Insurance
Agent fees
Other management expenses
Examples of deductible expenses (2)
Repairs
HMRC approved mileage allowances
Why is capital expenditure not allowed?
Since improvements are capital and are therefore disallowed
Where can capital allowances be claimed?
On expenditure on plant and machinery used for maintenance of property
What receives replacement furniture relief?
Usually given for furniture and furnishings
When does replacement furniture relief occur?
No relief for initial cost, only when assets are replaced
What happens when a fridge is replaced by a fridge freezer?
Only the cost of an equivalent fridge qualifies for relief
