188体育

Niamh has relievable receipts from letting out her cabin in Switzerland totalling 拢700 with associated expenses of 拢100 in the tax year. She also has relievable receipts from letting out a flat in Belfast of 拢600 and another in York of 拢500 with associated expenses of 拢150 in the tax year.

Niamh elects to use the property allowance for partial relief. Her relevant property income for the tax year comes from two property businesses (a UK property business and an overseas property business).

Niamh computes partial relief as follows:

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

The total receipts of her UK relevant property business is 拢1,100.

The total receipts of her overseas relevant property business is 拢700

Step 2 鈥� Subtract the Deductible Amount from Receipts:

Niamh must then choose how to allocate the deductible amount of 拢1,000 to her two relevant property businesses.

Niamh chooses to deduct 拢700 from her overseas relevant property business. This reduces the taxable profits in her overseas property business to NIL (拢700-拢700 = 拢0).

Niamh allocates the remaining 拢300 of the deductible amount to her UK property business. This leaves Niamh with 拢800 of taxable profits in her UK property business (拢1,100 - 拢300= 拢800)

The expenses of either business are not brought into account because you cannot claim both the property allowance and expenses.