Help understanding accommodation question
jimbo123
Registered Posts: 5
in Personal Tax
The following question is from one of the practice exams on the AAT site.
She was provided a house throughout 15/16.
It was purchased in March 2010 for 214k.
House was improved at a cost of £18.5k in 2013.
In June 2015 the house was further improved at cost of £5.4k.
What is the cost of the accomodation that will be used to calculate the benefit?
Answer states it is £232500, ie. original purchase price and the first upgrade, but not the second one (which I included).
Is this because I ignore any upgrades after they have moved in and value the property at the value when they moved in only?
She was provided a house throughout 15/16.
It was purchased in March 2010 for 214k.
House was improved at a cost of £18.5k in 2013.
In June 2015 the house was further improved at cost of £5.4k.
What is the cost of the accomodation that will be used to calculate the benefit?
Answer states it is £232500, ie. original purchase price and the first upgrade, but not the second one (which I included).
Is this because I ignore any upgrades after they have moved in and value the property at the value when they moved in only?
0
Comments
-
Hi,
You ignore the second upgrade - not because of when they moved in but because it was completed after the start of the tax year 15/16.
So for tax year 16/17 calculations you would include the £5.4k upgrade.
Does this make sense?0
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