TAXATION (TX- F6)
PROPERTY INCOME
LIST OF EXPENSES
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2)
3)
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5)
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7)
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10)
Revenue expenditures are allowed like repairs, maintenance, renovation and decoration.
Capital expenditures are not allowed like improvements.
Provision and estimates are not allowed like depreciation and bad debt.
Only bad debit right off is allowed when tenant has left the property.
Water tax and council tax are allowed.
Agent commission, advertisement, legal charges or any other expenses that is incurred to rent out
the property is allowed.
Insurance expenses is allowed according to the cash payment basis.
Rent paid is allowed.
In case of mortgage of property, the interest expenses is allowed but according to some special tax
rules.
In case of furnished accommodation another expense is allowed knows as “replacement furniture
relief”
Q.1 On 6th June 2022 Alex rent out his property at an annual rent of £120000 received in advance on
monthly basis. He incurred the following expenditures:
Repairs = £3000
Advertisement = £2500
Water tax = £1200
Insurance = £7000 paid in 22/23
Calculate the amount of tax liability of Alex for the tax year of 22/23.
Q.2 On 6th July 2022 Peter rent out his property at a monthly rent of £12000 received in advance. He
incurred the following expenditures:
1)
2)
3)
4)
5)
Repairs = £4500
Agent commission = £3000
Water tax = £500
Council tax = £400
Insurance paid in 22/23 = £5200
Calculate the amount of tax liability of Peter for the tax year of 22/23.
Prepared By: RAMEEZ
ARAIN
TAXATION (TX- F6)
th
Q.3 On 6 May 2022, Mark rent out his property at a monthly rent of £5000 received at advance. He
also received a premium of £50,000 for 20 years and incurred allowed expenses of £20,000 in 22/23.
Calculate the amount the of tax liability of Mark for the tax year of 22/23.
Q.4 On 6th May 2022, Jacob rent out his property at a monthly rent of £8000 received at advance. He
also received a premium of £40,000 for 5 years and incurred expenses of £25,000 in 22/23.
Calculate the amount the of tax liability of Jacob for the tax year of 22/23
Q.5 On 6th June 2022, Ahmed rent out his property at a monthly rent of £10,000 received in advance. He
incurred allowed expenses of £8000 in 22/23 and also paid an interest of £12000 on mortgage of the
property.
Calculate the amount of tax liability of Ahmed for the tax year of 22/23.
Q.6 On 6th June 2022 Ali rent out his property @ a month rent of £10,000 received in advance. He also
received a premium of £50,000 for 25 years. He incurred allowed expenses of £10,000 in 22/23 and also
paid an interest of £15000 on the mortgage of the property.
Calculate the tax liability of Ali for the tax year of 22/23
Q.7 On 6th May 2022 Peter rent out his property @ a monthly rent of £8,500 received in advance. He
incurred an allowed expenses of £12,000 in 22/23. He replaced the dish washer with a high standard
dishwasher of £4000. On the same date, the same standard asset is costing £3000. The property is let
out furnished.
Calculate the amount of tax liability of Peter for the tax year of 22/23
Q.8 On 6th Aug 2022 Alex rent out his furnished accommodation @ a monthly rent of £7500 in advance.
Also received a premium £50,000 for 10 years. He incurred allowed expense of £12000. Also paid
interest of £9000 on the mortgage of the property. He replaced a washing machine of same model
costing £2700 and scrap value of £350.
Calculate the tax liability of Alex for the tax year of 22/23.
Q.9 Mark rent out his unfurnished accommodation at a monthly rent of £7000 received in advance on
6th June, 2022. He also received a premium of £40,000 for 20 years and made an allowed expense of
£25000 in 22/23. He also rent out one furnish room of his main residence and received a rent of £15000
in 22/23 and make an allowed expenses of £5000.
Calculate the tax liability of Mark for the tax year of 22/23.
Prepared By: RAMEEZ
ARAIN
TAXATION (TX- F6)
Prepared By: RAMEEZ
ARAIN