Please enable JavaScript.
Coggle requires JavaScript to display documents.
Introduction to Property Income (Allowable expenses (Wear and Tear…
Introduction to Property Income
Rents from Properties i.e. houses and flats
ITTOIA 2005 s.264 and s.266
ITTOIA 2005 s.276-277
Also covers shooting and fishing rights
Premiums on leases treated as taxable income
Use Accruals Basis
Allowable expenses
Wear and Tear Allowance has been
ABOLISHED
from 2016/17
Baths, toilets, washbasins and kitchen units are allowable
Double Glazing Windows now an allowable expense
Replacement of old units with modern equivalents classed as a repair and allowable
Wholly and Exclusively for the business of letting e.g. Agent's fees, commission and repair expenses
Replacement of domestic items relief
Insurance, water charges, council tax and interest on loans paid by landlord are deductible
Replacement Domestic Items Relief
Replaces Wear and Tear Allowance
Furnishings, household appliances, kitchenware are deductible
Not allowable for FHL or rent-a-room relief
If replacement substantial improvement, cost of equipment equivalent to the technological spec of the old unit will be used
ITTOIA 2005 s.311A
Nominal Lease
Landlord does not charge market value rent i.e. to family member
If expenses exceed rent, they are matched and entered as NIL on tax computation
Losses from rental income
Loss carried forward to next tax year
Taxpayer can get relief if made profit but has losses brought forward
Rent-a-Room Relief
£7500 exemption for household, not individual
Landlord must live in the same property as tenant(s)
Does not affect PPR
Property jointly owned, relief divided by how many people bought the property
ITTOIA 2005 ss.784-802