Chapter 3 - Property Income and Investments – Individuals - ACCA Taxation (TX-UK) lectures
YouTube video
YouTube video
13 Comments
M
Monique·
In the OpenTuition text book, for Example 1, the answer for the accrual basis is 5,300 - can I confirm that this is an error and the answer is actually 3,700 as per the video?
D
Deshaun·
It is an error, they added the allowable expenses as opposed to subtracting them from the Rental income
A
asura gupta·
Property business income
Sale Ltd jets out an office building which is surplus to requirements, although the property was empty between 1 July 2021 and 31 August 2021 Income and expenditure for the year ended 31 March 2022 is:
Date received(paid)
Insurance for the year ended 31 March 2022 (1400) paid on 1 April 2021
Rent for the quarter ended 30 June 2021
6300 received on 1 April 2021
10 July 2021
Repaid security deposit of one month's rent
(2,100)
5 August 2021
Decorating the office building
(3,700)
12 August 2021
Advertising for tenants
(800)
1 September 2021
Premium for a 12-year lease
15,000
1 September 2021
Rent for the year ended 31 August 2022
27,000
What is the property income?
O
Oluwatosin·
I just want to say thank you to the Teacher. THANK YOU!!
J
Jill·
My pleasure
T
Trushal·
For Part 1 Video Example 1 Accurals Basis the Answers - Page 223 of Lecture notes they have added the 800 expenses and posted the income as 5300 Why??
T
tarmugi·
Because the fourth payment in arrears of 1500 is on 30 June 2023 which is after the end of the tax year.
D
Deborah·
Why in example one, she used 4500 for the in arrears?
V
Veronica·
It’s the figure multiply by 9 months divided by 12 months to get 4500
F
fatima66·
i dont understand why in example 1 the rent is taken for 11 months shout it not be from july 2022 to march 2023 9 months rent?
M
mano·
When the miss was explaining the example, she took 11 months instead of 12 bcoz of the 1 month missing (when the tenant did'nt pay )
as they have said that the annual rent is 9600......Even i got confused with it......now for exam i hope they pose easy question......but whether you are taking 11 months or 9 months ...,make sure to make a NOTE in the answer that u have assumed (...) .as this was said by the miss in her lectures to write a note when u don't understand..........this will definitely fetch u some marks even if u are wrong
B
Benhur·
I really like the lectures,Thanks.
I have a question though,on the lectures in example 1 we have taken redecorations as deductible expense but in example 2 we didnt.
Any reason for that?
Z
Zahoor·
Because the redecorations expense occured in 2023 so it will be deducted in the tax year 2023/24
Sale Ltd jets out an office building which is surplus to requirements, although the property was empty between 1 July 2021 and 31 August 2021 Income and expenditure for the year ended 31 March 2022 is:
Date received(paid)
Insurance for the year ended 31 March 2022 (1400) paid on 1 April 2021
Rent for the quarter ended 30 June 2021
6300 received on 1 April 2021
10 July 2021
Repaid security deposit of one month's rent
(2,100)
5 August 2021
Decorating the office building
(3,700)
12 August 2021
Advertising for tenants
(800)
1 September 2021
Premium for a 12-year lease
15,000
1 September 2021
Rent for the year ended 31 August 2022
27,000
What is the property income?
as they have said that the annual rent is 9600......Even i got confused with it......now for exam i hope they pose easy question......but whether you are taking 11 months or 9 months ...,make sure to make a NOTE in the answer that u have assumed (...) .as this was said by the miss in her lectures to write a note when u don't understand..........this will definitely fetch u some marks even if u are wrong
I have a question though,on the lectures in example 1 we have taken redecorations as deductible expense but in example 2 we didnt.
Any reason for that?