Practice Assessment 2 - Q 1.5 - Property income

bolingbrokebolingbroke Registered Posts: 11
Does anyone understand the answer for question 1.5 for practice assessment 2.

For 35 London Street I get 3400
Rent from 1st tenants (1 April, £450, & 1 May £450) £900 and Rent from 2nd tenants (5 months from November at £500) £3500 = £3400 ...extension cost not allowed as a deduction.

The answers give £3450 for that property...can anyone explain?.

Thanks

Comments

  • bolingbrokebolingbroke Registered Posts: 11
    Also Practice assessment 1 - 1.5: Why is Sam allowed to claim the improvement from single glazed windows to double glazed?
  • CornishPixieCornishPixie Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 66
    In terms of your second question, this would be allowed under repair and maintenance as it's classed as a repair. The windows are already in place and are not part of a new build, which would be classed as capital expenditure.

    For your first question, I'm assuming this question relates to Mary, but it's a year since I've taken this exam and my book only shows rent at £450 for the entire year, whereas you are showing £500 from November onwards. Are you able to put the question up and someone will be along to help you.
  • bolingbrokebolingbroke Registered Posts: 11
    edited June 19
    Thanks CornishPixie.

    I can't seem to copy and paste it here but I think I understand it now. For anyone else wondering the same, tax year runs to April 5 so the second tenants will have paid for six months at 500, £3000. The first tenants paid for for two month but were due three so the landlord can write the last 450 as a loss, so just 450 from them, £3450 in total.
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