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Percy rents out a home fully furnished. The house does not qualify as a
furnished holiday letting. For the tax year 2022/23 his rental expenses
are:
Interest on loan to acquire property £460
Insurance £600
New conservatory £5,100
Replacement kitchen equipment £200
How much can Percy claim as allowable expenses in calculating
taxable property income in the tax year 2022/23?
A £1,260
B £800
C £1,060
D £5,900
The Kaplan said the answer is B and I am not sure about the Interest on loan to acquire property £460 is allowable or not.I was confused at first by the answer to this question. I think this is because I believed at first that a qualifying furnished holiday letting was being discussed (probably due to title given for thread). My understanding is that interest expense is allowable for qualifying furnished holiday lettings. Anyway I just thought I would respond here in case anyone coming across this thread makes the same mistake I initially made in thinking a qualifying furnished holiday letting was being discussed.
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