Susan is granted a 20-year lease on a property, paying a premium of 76,000. Explain how tax

Question:

Susan is granted a 20-year lease on a property, paying a premium of £76,000. Explain how tax relief will be given in relation to this premium if:

(a) she uses the property for trading purposes, or

(b) she grants a sub-lease to Timothy for five years, receiving a premium of either.

(i) £25,000 or (ii) £10,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Taxation Finance Act 2023

ISBN: 9781292461083

29th Edition

Authors: Alan Melville

See More Books

Question Posted: May 02, 2024 02:00 AM

See More Questions

Prairie Eateries Limited (PEL) is considering the following projects. PEL uses straight-line depreciation. Required: Calculate the accounting rate of return for each project. Projects Net profit...
Construct the market supply schedule of jet-ski rides. The table gives the supply schedules for jet-ski rides by the only suppliers: Rick, Sam, and Tom. Quantity suppli (rides per day) Price (dollars...
Susan is granted a 20 -year lease on a property, paying a premium of 76, 000. Explain how tax relief will be given in relation to this premium if: (a) she uses the property for trading purposes, or...
State the degree and leading coefficient of the polynomial f(x) = 4 + x = 2x 2 - 7x 3 .
Suppose you are the new controller of a small but growing company and you find that the firm has a policy of paying cash for all purchases of goods even though it could obtain credit. The president...
On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the...
Calculate SSE and s2 for each of the following cases: LO9 a. n = 25, SSyy = 110, SSxy = 60, b n 1 = .80 b. n = 50, ay2 = 900, ay = 90, SSxy = 2500, b n 1 = .25 c. n = 25, a1yi - y22 = 75, SSxy = 100,...
Table P-8 contains a time series with 126 observations. Using a computer program for ARIMA modeling, obtain a plot of the data, the sample autocorrelations, and the sample partial autocorrelations....
Indiana Co. began a construction project in 2021 with a contract price of $163 million to be received when the project is completed in 2023. During 2021, Indiana incurred $35 million of costs and...
In 2023-24, Victor rents out a room in his home and receives rents of 8,150. He incurs allowable expenses of 820. What "rent-a-room" elections (if any) should he make?
In tax year 2023-24, a landlord receives a premium of 36,000 when granting a 25-year lease to a tenant. How much of this premium is chargeable to income tax?
A random sample of 78 observations produced the following sums: (a) Test the null hypothesis that = 0.45 against the alternative hypothesis that (b) Test the null hypothesis that = 0.45 against...
Are investors too impatient in wanting returns from these investments? "Would Nordstrom be better off if it were owned by private investors, rather than as a publicly traded firm since this would...
how AI is used to discover new material, will it change the whole science environment?
QUESTION 1 Which one of the following statements is not part of the "bundle of rights" enjoyed by a fee simple owner of property? a. The right to possess the property b. The right to control what...
In order to pay his rent, Tom, a college student, has taken a job in the computer department of a local department store. His only responsibility is to answer telephone calls to the department, most...
How does database normalization impact data integrity and query performance in complex relational schemas ? Explain
In Example 5.4 on page 186, you and two friends decided to go to Wendys. Now, suppose that instead you go to McDonalds, which recently filled approximately 88.3% of the orders correctly. What is the...
Activator rod AB exerts on crank BCD a force P directed along line AB. Knowing that P must have a 100-N component perpendicular to arm BC of the crank, determine (a) The magnitude of the force P, (b)...
thumbs up if correct A stock paying no dividends is priced at $154. Over the next 3-months you expect the stock torpeither be up 10% or down 10%. The risk-free rate is 1% per annum compounded...
Question 17 2 pts Activities between affiliated entities, such as a company and its management, must be disclosed in the financial statements of a corporation as O significant relationships O segment...
Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000...

Susan is granted a 20-year lease on a property, paying a premium of 76,000. Explain how tax

Question:

Step by Step Answer:

a The amount assessable to income tax on Susans landlord is 4712...View the full answer

Taxation Finance Act 2023

Students also viewed these Business questions