Property Income

When do you use accruals basis?

If gross rental income exceeds £150k

How are deductible expenses restricted for non-commercial let?

Restricted to the amount of rent received

What expenses are deductible from rents?

Wholly and exclusively for the business

What relief is available for loans to purchase property?

Relief from final tax liability - 20% of interest paid

When are replacements not allowable?

If they are an improvement

Why does it matter if it is a furnished letting?

You can claim relief for the cost of replacing domestic items such as furniture, furnishings, appliances etc

What can you do with losses?

carry forward and offset against rental income in future.

What expenses are deductible under rent a room scheme?

None

What election can be made where gross receipts from property income exceed £1k?

Election to deduct property allowance of £1k instead of actual expenses

How to calculate the cost on grant of a short lease?

2% * premium * (n-1)

Does the cost of an extension add to base cost?

Yes - anything that is reflected in the value of the house today

Husband and wife are divorcing - Husband sells property today, how long does wife have to sell her share to have same CGT as husband?

Within 9 months of moving out

How long do divorcing partners have for ngnl treatment?

earlier of 3 years after end of TY of separation and date of divorce

What rent a room income is exempt?

Income up to £7.5k

Can you use the £1k property allowance if renting a room?

No not where RaR relief applies

What is time limit for notifying chargeability to HMRC?

6m after end of year assessment in which the source of income first arises