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property income – rent a room relief

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › property income – rent a room relief

  • This topic has 1 reply, 2 voices, and was last updated 14 years ago by Tax Tutor.
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  • Author
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  • May 23, 2011 at 6:12 pm #48569
    susu123
    Member
    • Topics: 21
    • Replies: 17
    • ☆

    Barbara rented a room in her main residence and the monthly rent is £370. 09/10, her irrecoverable debt was a month’s rent. If Barbara wants to use rent a room relief, which calculation below is the right one:
    1. £370*12 – £4250 = £190 — property income
    2. £370*11 = 4070 < 4250 — exempt

    May 24, 2011 at 9:15 am #82182
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    If the annual rent is below £4250 it is exempt. If it is above then calculate the property income as normal or if lower take rental income – £4250
    Hope this helps

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