Tx notes fa22 Final

Tax liability
4,234 
Mr Mature
Mrs Mature
Property Income
17,500
17,500
Total Income
17,500
17,500
Less: Personal Allowance
(12,570)
(12,570)
Taxable income
4,930
4,930
Income Tax 
4,930 @ 20%
986
4,930 @ 20%
986
Tax liability
986
986
Combined liability
£1,972
Original liability
£4,234
Tax Saving
£2,262

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5. Peter 
Note 1: Replacement furniture relief:
No relief is available for the initial cost of the items purchased. Relief is available, however on the 
replacement of the fridge and the washing machine. 
Relief for the fridge freezer purchased is restricted to the purchase cost of an equivalent fridge 
reduced by the proceeds received from the sale of the old fridge (350 - 120 = 230). 
The washing machine is replaced by a similar model and again its cost is reduced by the proceeds 
of sale of the original asset (250 - 100 = 150).
£
£
Rental income
Property A - Rent received (4 quarterly payments)
4,000
Property B - Rent received 2/4 
×
£5,000
2,500
6,500
Expenses
Property A:
Insurance
420
Repainting exterior
810
Roof repairs (pre-trading expenditure)
1,600
Property B:
Insurance 
585
Letting expenses
40
Replacement furniture relief (note 1)
380
(3,835)
Property Income for the tax year 2022/23
2,665

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