Hello for the insurance cost in question 3 , Please why was it not calculated pro-rata basis . since april – june 2023 fall under the 420 pounds payment and not all of the 480 pound is for 23/24 tax year.
In example MCQ2, we were asked to find Gina’s taxable income, and it was highlighted that property income is her only income for the 2023/24 tax year. I’m wondering why we didn’t deduct the personal allowance to answer the question. Am I missing something?
Sorry to bother you! ‘If one or more persons do occupy the property for more than 31 consecutive days then these periods of long letting must not exceed 155 days in the year.’ Can you give example, please? Because it is kinda confusing, it is better to write 155 days instead of 31, isn’t it? We students get tricked by 31 and 155.
As far as I know- if you have exceeded 31 days on any event still all of your long tenant should not stay like this more than 155 days a year (altoghter) otherwise that becomes a normal let.
First of all – thank you so much for such a great explanation and your effort, Mrs Jill.
In the Example 2 we have £9,600 annual rent. Tenant started to pay in July. I am struggling to understand why do we count 11 month of rent (July 23 – June 24) since tax year will end in April 2024? Could you help to understand this bit please?
Heya, I believe it is 11 months because within that tax year 2023/24 we count rent covering 12 months (Apr 23 to Mar 24) no matter which tenant moved in. But a tenant missed out one month rent (Jun 23), so we have 11 months to take into account instead of full 12 months.
Good morning, in example 2, why wasn’t the “construction of garage, replacing the car port” included in the calculation? It is in the current tax year or no?
construction of the garage is considered a capital expenditure. It would have been an allowable expense if it was repairs to the carport or replacing the carport with a like-for-like replacement.
Good evening. I am not sure I understand why the income for property B is only 2,500. The annual rent is payable quarterly in arrears, meaning that the rent for the quarters 2, 3 and 4 is received. Or maybe I am calculating t wrongly. Than you!
Rent for only 2 out of 4 quarters were received, that is 31st September and 31st December 2023, it would have been 3 if rent for 31 march 2024 was paid. Also, don’t forget that property B was paid in arrears, which is always paid at the end of the month, unlike payment in advance that happens on the first of every month. I hope you understand.
Hamdallah says
Hello for the insurance cost in question 3 , Please why was it not calculated pro-rata basis . since april – june 2023 fall under the 420 pounds payment and not all of the 480 pound is for 23/24 tax year.
Hamdallah says
cash basis!. was confused for a minute
asaria says
Hi,
In example MCQ2, we were asked to find Gina’s taxable income, and it was highlighted that property income is her only income for the 2023/24 tax year. I’m wondering why we didn’t deduct the personal allowance to answer the question. Am I missing something?
Thank you.
asaria says
just realised, it’s because we have already been provided with taxable figure 😉
Adkhambek says
Sorry to bother you! ‘If one or more
persons do occupy the property for more than 31 consecutive days then these periods of long
letting must not exceed 155 days in the year.’ Can you give example, please? Because it is kinda confusing, it is better to write 155 days instead of 31, isn’t it? We students get tricked by 31 and 155.
mainiexe says
As far as I know- if you have exceeded 31 days on any event still all of your long tenant should not stay like this more than 155 days a year (altoghter) otherwise that becomes a normal let.
Ok.sana says
Good afternoon.
First of all – thank you so much for such a great explanation and your effort, Mrs Jill.
In the Example 2 we have £9,600 annual rent. Tenant started to pay in July. I am struggling to understand why do we count 11 month of rent (July 23 – June 24) since tax year will end in April 2024? Could you help to understand this bit please?
Many thanks <3
Oksana
mcnugget says
Heya, I believe it is 11 months because within that tax year 2023/24 we count rent covering 12 months (Apr 23 to Mar 24) no matter which tenant moved in. But a tenant missed out one month rent (Jun 23), so we have 11 months to take into account instead of full 12 months.
scorpion716 says
Miss Jill simply your are queen
boyemaggie says
Good morning, in example 2, why wasn’t the “construction of garage, replacing the car port” included in the calculation? It is in the current tax year or no?
IMULLA says
construction of the garage is considered a capital expenditure. It would have been an allowable expense if it was repairs to the carport or replacing the carport with a like-for-like replacement.
Georgiana says
Good evening. I am not sure I understand why the income for property B is only 2,500. The annual rent is payable quarterly in arrears, meaning that the rent for the quarters 2, 3 and 4 is received. Or maybe I am calculating t wrongly. Than you!
boyemaggie says
Rent for only 2 out of 4 quarters were received, that is 31st September and 31st December 2023, it would have been 3 if rent for 31 march 2024 was paid.
Also, don’t forget that property B was paid in arrears, which is always paid at the end of the month, unlike payment in advance that happens on the first of every month.
I hope you understand.
NakiP says
Remember it said that the tenants did not pay the March installment until the next tax year. Therefore, it was not included in the calculation.