Module 5

Question 1

Deduction for replacement furniture relief?

Answer 1

Cost of replacement - improvements - proceeds from old item + cost of disposing old item

Question 2

Types of transactions in respect of leases

Answer 2

Grand - creates

Assignment - sells/transfers p

Question 3

Taxed as property income for short lease

Answer 3

Premium x 50- Y /50

Y is years - 1

Question 4

Long lease (50+)

Answer 4

Entire premium treated as capital receipt

Question 5

Property loses

Answer 5

Carried forward to offset future loses

Non-commercial loss can’t be created

UK and oversees separate

Question 6

Property income on cash basis when?

Answer 6

Doesn’t exceed 150000

Accruals basis if more
Companies always accruals

Question 7

Mortgage interest costs deduction?

Answer 7

18/19 50% deducted
19/20 25% deducted
Residential only

Question 8

Replacement furniture relief?

Answer 8

Cost - improvements - proceeds of old + cost of disposing

No relief for initial purchase