188体育

Stephanie rents out space in her garden in Dundee to a local nursery group from which she has 拢900 of relievable receipts in the year. She also lets out storage space in her attic for which she receives 拢300 of relievable receipts in the year. She has legal expenses of 拢150 in respect of drawing up a rental agreement between her and the local nursery group.

Stephanie elects to use the property allowance for partial relief. All her relevant property income for the tax year is from the one property business (her UK property business).

Stephanie computes partial relief as follows:

Step 1 鈥� Calculate Total Receipts of the relevant property business:

The total receipts of the relevant property business is 拢1,200.

Step 2 鈥� Subtract the Deductible Amount from Receipts:

The 拢1,000 allowance is subtracted from the total receipts for her property business. This leaves 拢200 (拢1,200 - 拢1,000) of taxable profits for Stephanie鈥檚 property business.

The legal fees of 拢150 are not brought into account because you cannot claim both the property allowance and expenses.