Tx notes fa22 Final

June 2023 to March 2024 exams
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6. Matthew 
The Property loss for the tax year 2022/23 will be £3,500 calculated as follows:
This is carried forward against future property income only.
Note:
If the expenses on Cottage 1 included mortgage interest payable for 2022/23 of £5,000 none of the 
interest payable would be allowed as a deductible expense therefore reducing the expenses to 
£9,000 and creating a property income assessment of £1,500. A tax credit however of £1,000 (5,000 
x 20%) would reduce the tax liability of Matthew for the tax year.
£
Rental income (5,000 + 4,000 + 1,500)
10,500
Expenses (7,500 + 2,000 + 4,500)
14,000
Property loss 
(3,500)

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June 2023 to March 2024 exams
Watch free ACCA TX lectures
7. Charlie 
Gross rents do not exceed £7500 (52 
×
100 = £5,200) and therefore rent a room relief is still available 
in 2022/23 so two possible tax treatments may apply:
1.
Normal calculation
2.
Alternative calculation
Charlie should withdraw the election for 2022/23 so he is allowed a loss of £900 to carry forward 
from 2022/23 to 2023/24.
£
Rental income
5,200
less expenses
(6,100)
Property Income loss
(900)
£
Gross rents
5,200 
less rent a room relief 
(7,500)
Property Income
Nil

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