ACCAF6四川大学工商管理学院6-PPT课件.pptx

1 Property business incomelIncome from land and buildings in UK as non-savings income.lTaxpayer is treated as running a business.lAll the rents and expenses for all properties are pooled,to give a single profit or loss on an accruals basis first for each property rents expenses=property income then pooled.lDeductible expense -relief is available for irrecoverable rent as impaired debt.-interest on loans to buy or improve propertiesCapital allowanceslSomeone lets property furnished can claim the 10%wear and tear allowance.Capital allowances are not available.l10%wear and tear allowance -as an expense -computation annual deduction is 10%*(rents amounts paid by landlord but are normally a tenants burden).These amounts include any water rates and council tax paid by the landlord.2.Furnished holiday lettings(FHLs)lFor FHLs,income is taxed as property income.lHowever,some special rules for FHLs as follows:capital allowances are available on furniture.(chapter 8)income qualifies as relevant UK earnings for pension relief.(chapter 5)some relief for capital gains tax are available.(chapter 15)lIf a loss arises on a FHL,the only trade loss relief available is carry forward loss relief.lIf someone has furnished holiday lettings and other lettings,draw up two profit and loss accounts as if they has two separate UK property businesses.Example Edmond lets out two properties.The following information relates to the tax year 201112:Property oneThis is a freehold house that is let as a furnished holiday letting.During the tax year 201112 the property was let to various tenants for 18 weeks at 370 per week.Edmond spent 2,700 on furniture and kitchen equipment during May 2011.The other expenditure on this property for the tax year 201112 amounted to 10,110,and this is all allowable.Property twoThis is a freehold house that is let out furnished.The property was let throughout the tax year 201112 to the same tenant at a monthly rent of 575,payable in advance.The expenditure on this property for the tax year 201112 amounted to 9,710,and this is all allowable.Answer Edmond Furnished holiday letting loss 201112 Rent receivable(370 x 18)6,660Expenses 10,110Capital allowances(2,700 x 100%)2,700 (12,810)Furnished holiday letting loss (6,150)Edmond Property business loss 201112 Rent receivable(575 x 12)6,900Expenses 9,710Wear and tear allowance(6,900 x 10%)690 (10,400)Property business loss (3,500)Continued lThe furnished holiday letting loss will be carried forward and relieved against the first available furnished holiday letting profits.lThe property business loss will be carried forward and relieved against the first available property business profits.3.Rent a room relieflIf an individual lets a room or rooms in his or her main residence,a special exemption may apply.lLimit on exemption is gross rents of 4,250 for a tax year.This limit is halved if any other person(eg spouse/civil partner)also received income from renting accommodation in the property.-jointly held property (a)gross rents limit,taxpayer will be taxed in the ordinary way unless he elects for“alternative basis”.Alternative basislTaxpayers can choose the alternative basis.lIf he elects the alternative basis,he will be taxable on gross receipts less 4,250,with no deductions for expenses.Rent a room relief Ordinary waygross rents 4,250(2,125)-elects for“alternative basis”.-(gross rents-4,250)are taxable,and ignore expenses-(rent expenses)4 Premium on leases4.1 premium received lWhen a premium or similar consideration is received on the grant of a short lease(lease with a time period of less than 50 years),part of the premium is treated as rent received in the year of grant.lThe premium is treated as rent P (P2%(D 1)where:P=total premium D=duration of lease in years 4.2 Premium paid by traderslWhere a trader pays a premium for a lease he may deduct an amount from his taxable trading profits in each year of the lease.(as trading expense in chapter 7)lThe amount deductible is the figure treated as rent received by the landlord divided by the number of the years of the lease.4.3 Premiums for granting subleaselPart of premium received is treated as rent for sublease.lAdditional relief for premium paid for head lease rent part of premium for head lease duration of sublease/duration of head lease5.Property business losseslA loss from a UK property business is carried forward to set against future property business profits.lLosses from furnished holiday lettings(FHL)are dealt with under the special rules that apply to trading losses.Example Sheila owns three properties that were rented out.Her assessable income and allowable expenses for the two years to 5 April 2012 were:Property 1 2 3 Income 2010/11 1,200 450 3,150 2011/12 800 1,750 2,550Expenses 2010/11 1,850 600 2,800 2011/12 900 950 2,700Calculate Sheilas property business profit/(loss)for 2010/11 and 2011/12.Answer Property 1 2 3 Total 2010/11Income 1,200 450 3,150 4,800Less:Expenses (1,850)(600)(2,800)(5,250)Profit/(loss)(650)(150)350 (450)Property business profit 2010/11 NilLoss carried forward 450Continue Property 1 2 3 Total 2011/12Income 800 1,750 2,550 5,100Less:Expenses (900)(950)(2,700)(4,550)Profit/(loss)(100)800 (150)550 Less:Loss brought forward (450)Property business profit 2011/12 100