Taxable rent & allowable expense question, please help?

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Pjdav
Pjdav Registered Posts: 27
Hi can someone help me with the following, i need to work out the taxable rent and the allowable expense. i have calculated the taxable rent but i can come to the allowable expense figure...

Q:Geranium Grange was let for the whole of 2016/17 at £1,050 per month. Jules paid for the building insurance, which cost her £336 for the year from 1 January 16 and £384 for the year from 1 January 17.

Can you help me work out the allowable expense?

The table rent is £12,600(1050x12). The allowable expense i calculated is £432(384x3/12) adding it to £336. however this is wrong, The correct answer is £348 but how did they get this?

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  • N4T
    N4T Registered Posts: 191
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    You have to pro rata £336 too. £336 is for the period Jan - Dec 16. The period you need from this is Apr - Dec 16. So it's (£336 x 9/12) + (£384 x 3/12)
  • Pjdav
    Pjdav Registered Posts: 27
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    @N4T ahh thank you
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