Question 1

Section A

Sylvia owns a large converted barn which is her main residence. During 2023/24, she let out two furnished rooms to eco-tourists, receiving total rent of £8,200. She incurred allowable expenses of £1,400 related to the letting.

Assuming Sylvia wishes to minimize her taxable income, what is her taxable property income for 2023/24?

Accepted Answer

Compare the normal property income calculation (Rent - Expenses) with the Rent-a-Room relief calculation (Rent - £7,500 limit) and choose the lowest.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Deducting both the £7,500 exemption AND the actual expenses.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 3

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