Ursula owns a flat which was let to a tenant throughout tax year 2020-21. Rents received during the year were £10,500. Expenditure during the year was as follows:

The new sofa is superior to the sofa it replaced (and which was scrapped). It would have cost only £399 to have bought a new sofa which was equivalent in quality to the old one. Compute property income for 2020-21 (assuming no election for the accruals basis).

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Insurance for the year to 30 June 2021 Repairs and maintenance Replacement of sofa 380 1,150 729