Property Income Liable (2)

Question 1

How is the amount of relief reduced?

Answer 1

By any proceeds from selling the replaced old asset. No relief given to improvement of asset

Question 2

Why does replacement furniture not apply to furnished holiday lettings?

Answer 2

Cost of furniture and furnishings qualifies for capital allowances

Question 3

How is expenditure incurred up to 7 years prior to renting treated?

Answer 3

As being incurred on day one of the letting business

Question 4

What if total expenses exceed total rental income?

Answer 4

Property income assessment is nil
Excess property loss is c/f and offset against future property income profits