Property Income and Investments: Individuals (part 2) ACCA Taxation (TX-UK) FA2018
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8 Comments
N
neck·
Hi sir can you explain to me on example 2 which month is the starting year thanks
G
gayathrivinod·
Hello Sir,
Can you please help me out what you mentioned in the example 2 about insurance. The question is following the cash basis method.. But you said that if it was the accrued basis.. the previous year insurance would have been taken .. how and why should we consider it in 18/19 as it is already paid in 2017 ?
M
mubi05·
Hello sir
Please help me out how you calculated 11 months as they mentioned tenant vacated in June and sod managed let The property from 1 of July ?
Regards
M
Martin·
Hi,
The rent is payable in Advance, meaning June's rent was due 1 June. The tenant did not pay on that date and left the property without paying the June month rent. The new tenant only came in in July. Therefore June rent was not received, meaning only 11 months were received.
Y
yishion·
Hello sir, i am attending the exam in March 2020, the deductible amount of finance expense should be25% right? As that will be 2019/20 tax year i guess.
Thank you sir?
R
Rao Ahsan·
Not the sir but hopefully I can help you, So no if you take exam in march 2020 then you would still use 18/19 tax year as tax year 19/20 will start from 1st april. so finance expense allowable will be 50%
T
Tauqeer·
Good day Sir
I did not understand how in example 2 you took 11 months of rental income for the start of tax year 2018/19 will be 6 april 2018 and the tenant vacated property in june 2018.
K
kronos4230·
Rent for the month of April and May were received. Rent for the month of June alone was not received. Therefore, 11 months. April 6, 2018- April 5, 2019.
Can you please help me out what you mentioned in the example 2 about insurance. The question is following the cash basis method.. But you said that if it was the accrued basis.. the previous year insurance would have been taken .. how and why should we consider it in 18/19 as it is already paid in 2017 ?
Please help me out how you calculated 11 months as they mentioned tenant vacated in June and sod managed let The property from 1 of July ?
Regards
The rent is payable in Advance, meaning June's rent was due 1 June. The tenant did not pay on that date and left the property without paying the June month rent. The new tenant only came in in July. Therefore June rent was not received, meaning only 11 months were received.
Thank you sir?
I did not understand how in example 2 you took 11 months of rental income for the start of tax year 2018/19 will be 6 april 2018 and the tenant vacated property in june 2018.