THIS IS ONE QUESTION

Fiona owns a property that she has let furnished on a short-term basis for some years. The following information relates to the tax year 2021/22:

(1) Fiona's property business income amounted to 9,900. This was before taking account of her mortgage repayments which amounted 2,500 (consisting of 2,000 of interest and 500 capital repayments).

(2) The property was let out at a monthly rental of 1,000 payable on the 6th of each month. The rent due on 6 March 2021 was not received until 6 April 2021.

(3) Fiona had received a security deposit of 500 from a tenant when she let the property in January 2021. That tenant left the property on 5 January 2022 at the end of the letting period. On that date, Fiona used 200 of the deposit to pay for cleaning the property and repaid the remaining 300 to the departing tenant. She then let the property again on 6 January 2022 and received a security deposit of 600 from the incoming tenant. This amount was still held as a deposit by Fiona at 5 April 2022.

(4) Fiona disposed of an old washing machine for 25 and replaced it with a new washer-dryer at a cost of 550. The cost of a new washing machine equivalent to the one she disposed of would have been 330.

(5) Fiona travelled 1,000 miles in her car in relation to letting the property.

Fiona wants to know what is the income tax liability on her property business income for the tax year 2021/22 that is in addition to her income tax liability on her other income. Fiona has other taxable income (all non-savings) of 50,000.

For the tax year 2022/23, Fiona is considering using the accruals basis.

Fiona may incur substantial allowable expenditure on refurbishing the property in the tax year 2022/23 which could result in a property business loss. The property will then generate a profit in subsequent tax years. Fiona wants to know how the loss could be used.

1- What is Fiona's additional income tax liability for 2021/22 on her property business income?

2- What was the amount of income received when Fiona computed her property business income for 2021/22?

3- What was the total amount of expenditure paid in respect of the new washer-dryer in (4) and the use of Fiona's car in (5) that was deducted when Fiona computed her property business income for 2021/22?