TX -Ch-3 & Ch-4

Luke acquired a residential property that he first let out, unfurnished, on 1 August 2022 for an annual rental of £12,000 payable quarterly in advance. Expenditure for the period from 1 August 2022 to 5 April 2023 was:
What is Luke’s property income for the tax year 2022-23?

• £5,390

• £5,380

• £5,3880

• £5,480

Gloria lets out two furnished properties to holiday makers.  Both properties are available for letting for over 210 days each year.

1. (A) Property A was actually let for a total of 140 days. All lettings were on a weekly basis, except one letting which was from 1 July to 14 August.

2. (B) Property B was actually let for 110 days on a weekly basis. It was unoccupied for the rest of the time.

Identify, by clicking on the relevant boxes below, whether each property qualifies as furnished holiday accommodation.

• Property A-No
  Property B-Yes

• Property A-Yes
  Property B-No

Paul invested £6,000 in a stocks and shares Individual Savings Account (ISA) in January 2023.

How much can Paul invest in a cash ISA for the tax year 2022-23?

• 1. £7,000

• 1. £6,000

• 1. £20,000

• 1. £14,000

Since 6 April 2022, Nicolas has let out an unfurnished freehold office building. On that date, the tenant paid Nicolas a premium of £82,000 for the grant of a 15-year lease.

How much of the premium of £82,000 should Nicolas include when calculating his property income for the tax year 2022-23?

• £59,040

• £58,040

• £59,001

• £59,042

Rackman’s only source of taxable income is his property business consisting of unfurnished residential lettings. His profit for the tax year 2022-23 was £99,500. This does not include interest expenses of £24,000.

How much income tax is payable by Rackman under self-assessment for the tax year 2022-23?

• 1. £17,632

• 1. £27,232

• 1. £22,432

• 1. £27,460

Hana was UK resident in the tax year 2021/22. He worked full-time in Egypt throughout the tax year 2022/23.

What is the maximum number of days which Hana can spend in the UK and be treated as automatically not resident in the UK for the tax year 2022/23?

• 15

• 45

• 90

• 182

Which TWO of the following types of income are exempt from income tax?

• Interest on an NS&I Investment account

• Premium bond prizes

• Interest on UK government stocks ('gilts')

• Dividends on shares held in an Individual Savings Account

In the tax year 2022/23 Claudio has taxable income (after deduction of his personal allowance) consisting of £3,000 of non-savings income and £12,500 of savings income.

What is Claudio's income tax liability for the tax year 2022/23?

• £2,500

• £2,900

• £2,700

• £3,100

Mike and Delia are a married couple. In the tax year 2022/23, Mike has taxable non- savings income (after deducting his personal allowance) of £13,500.

Delia has no income in the tax year 2022/23. Delia has made an election in relation to her personal allowance for the tax year 2022/23.

What is Mike's income tax liability for the tax year 2022/23?

• £186

• £2,448

• £1,440

• £2,700

John is employed by Zebra plc. He was provided with a computer for private use on 6 November 2021.

The market value of the computer when first provided to an employee for private use was £3,600 and the computer had a market value of £2,000 when first provided to John for private use. Zebra plc gave the computer to John on 5 April 2023 when it had a market value of £1,000.

What are the total taxable benefits for John in respect of the computer for the tax year 2022/23?

• £2,880

• £3,300

• £1,720

• £1,833