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property income – pre-trading expenditure

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › property income – pre-trading expenditure

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • May 23, 2011 at 6:10 pm #48567
    susu123
    Member
    • Topics: 21
    • Replies: 17
    • ☆

    Emma bought a house 2 years ago. The house’s wallpaper was dated and Emma removed the wallpaper, replastered and painted the wall, which cost her £2000. She then rented it out from 6/4/2010. Is the £2000 revenue expenditure? Only revenue expenditure can be treated as pre-trading expenditure. Is that right? Thanks.

    May 24, 2011 at 9:12 am #82179
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    Yes revenue expenditure incurred up to 7 years before the rental activity is pre trading expenditure so is deductible

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