Compute property business income for three properties (9 marks)

1) Matthew Hartzog rents out as an individual taxpayer, a furnished room in his main residence. This is as living accommodation for a male colleague at 7,500. Matthew also paid allowable expenses of 400. (2 marks)

2) Matthew also lets out a first house throughout the tax year 2018/19 at a monthly rental of 2,800. Matthew has a mortgage loan on the house and in 2018/19 he makes capital repayments of 3,800 and pays interest of 18,000. Matthew has other expenses (all allowable) of 8,400 for 2018/19. Matthew has other taxable income (after deduction of his personal allowance) of 90,000 in 2018/19. (4 marks)

Matthewss second house was let out furnished through six months of the tax year 2018/19 on monthly rental of 500 payable on the 10th of each month.

Matthew purchased a new refrigerator costing 800 for the tenant on request. Matthew had not previously provided refrigerator.

Matthew spent 700 on maintenance and repairs

Matthew replaced old curtains with new for 500. Old curtains were sold for 50.

Compute Matthew's income tax liability in respect of his property business income for the tax year 2018/19.