ACCA F6 Chapter 6

15 Questions | Total Attempts: 49

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ACCA Quizzes & Trivia

Quiz of Chapter 6 of ACCA F6 Taxation "Property Income".


Questions and Answers
  • 1. 
    In the income tax computation, property income is classified as _______.
    • A. 

      Savings Income

    • B. 

      Non-savings Income

    • C. 

      Property Income

    • D. 

      Dividend Income

  • 2. 
    Wear & Tear allowance can be claimed in respect of the property which is _________.
    • A. 

      Let Furnished

    • B. 

      Let Unfurnished

    • C. 

      Let for holiday makers

    • D. 

      Let for entire year

  • 3. 
      Which of the following is correct in respect of Capital Allowance & Wear and Tear Allowance?
    • A. 

      Only one can be claimed for the accommodation let furnished

    • B. 

      Both can be claimed in respect of property let unfurnished

    • C. 

      Only one can be claimed for the accommodation let unfurnished

    • D. 

      Both can be claimed in respect of property let furnished

  • 4. 
    Alpha rents out 3 furnished properties during tax year 2011/12. He received rent at £500 per month from property A in advance for July 2011-June2012. Rent per month for the previous year was 10% less. For property B, rent is paid monthly in advance. The rent is £600 per month. Rent was 10% less till 30 June 2011. Property C earns the rent quarterly in advance of £700 per month. Quarters start in January, April, July & September. The rent was 10% less up to 30 September 2011. Water rates of £250 and council tax of £450 are paid on 1/2/2012 in respect of property A which cover calendar year of 2012. 20% less amount was paid for both, last year, on 1/2/2011. In respect of property B, Water Rates and Council Tax of £300 and £150 were paid for calendar year 2012 on 1/3/2012. The same were paid 15% less for calendar years 2011 on 1/3/2011. In respect of property C, Water Rates and Council Tax of £400 and £200 respectively on 1/1/2012 for the calendar year 2012. The same amount was paid for calendar year 2011 on 1/1/2011. The rental income from property A for the tax year 2011/12 is:
    • A. 

      £6,000

    • B. 

      £5,850

    • C. 

      £5,300

    • D. 

      £4,730

  • 5. 
    Alpha rents out 3 furnished properties during tax year 2011/12. He received rent at £500 per month from property A in advance for July 2011-June2012. Rent per month for the previous year was 10% less. For property B, rent is paid monthly in advance. The rent is £600 per month. Rent was 10% less till 30 June 2011. Property C earns the rent quarterly in advance of £700 per month. Quarters start in January, April, July & September. The rent was 10% less up to 30 September 2011. Water rates of £250 and council tax of £450 are paid on 1/2/2012 in respect of property A which cover calendar year of 2012. 20% less amount was paid for both, last year, on 1/2/2011. In respect of property B, Water Rates and Council Tax of £300 and £150 were paid for calendar year 2012 on 1/3/2012. The same were paid 15% less for calendar years 2011 on 1/3/2011. In respect of property C, Water Rates and Council Tax of £400 and £200 respectively on 1/1/2012 for the calendar year 2012. The same amount was paid for calendar year 2011 on 1/1/2011. The rental income from property B for the tax year 2011/12 is:
    • A. 

      £5,959

    • B. 

      £6,850

    • C. 

      £7,000

    • D. 

      £7,020

  • 6. 
    Alpha rents out 3 furnished properties during tax year 2011/12. He received rent at £500 per month from property A in advance for July 2011-June2012. Rent per month for the previous year was 10% less. For property B, rent is paid monthly in advance. The rent is £600 per month. Rent was 10% less till 30 June 2011. Property C earns the rent quarterly in advance of £700 per month. Quarters start in January, April, July & September. The rent was 10% less up to 30 September 2011. Water rates of £250 and council tax of £450 are paid on 1/2/2012 in respect of property A which cover calendar year of 2012. 20% less amount was paid for both, last year, on 1/2/2011. In respect of property B, Water Rates and Council Tax of £300 and £150 were paid for calendar year 2012 on 1/3/2012. The same were paid 15% less for calendar years 2011 on 1/3/2011. In respect of property C, Water Rates and Council Tax of £400 and £200 respectively on 1/1/2012 for the calendar year 2012. The same amount was paid for calendar year 2011 on 1/1/2011. The rental income from property C for the tax year 2011/12 is:
    • A. 

      £4,200

    • B. 

      £6,642

    • C. 

      £7,200

    • D. 

      £7,980

  • 7. 
    Romeo lets out the property furnished on 1 July 2011. He received quarterly rent of £3,000 for each quarter staring January, April, July and September in arrears. Council Tax of £900 and Water charges of £420 were paid by him on 1 October 2011 for the tax year 2011/12. Previous tenant left on 30 June 2011 and did not pay the rent for the last quarter which was £2,800. The taxable rental income is: 
    • A. 

      £11,800

    • B. 

      £9,000

    • C. 

      £8,448

    • D. 

      £6,912

  • 8. 
    In relation to Furnished Holiday lettings, furniture can attract:
    • A. 

      Only Wear & Tear allowance

    • B. 

      Only Capital Allowance

    • C. 

      Both allowances

    • D. 

      None of the above

  • 9. 
    Income from Furnished Holiday Lettings:
    • A. 

      Qualifies as relevant earnings for the purpose of pension relief

    • B. 

      Does not qualify as relevant earnings for the purpose of pension relief

    • C. 

      Can either qualify subject to the taxpayer opting for that

  • 10. 
    In order to qualify for Furnished Holiday lettings, the accommodation is available for letting for at least _____ days during the tax year.
    • A. 

      75

    • B. 

      110

    • C. 

      130

    • D. 

      140

  • 11. 
    In order to qualify for Furnished Holiday lettings, the accommodation must actually be let to members of the public for at least _____ days during the tax year.
    • A. 

      70

    • B. 

      95

    • C. 

      107

    • D. 

      111

  • 12. 
    Exempt amount for Rent A Room Relief is £_______ (gross rent before expenses and capital allowances).
    • A. 

      1,250

    • B. 

      2,250

    • C. 

      3,250

    • D. 

      4,250

  • 13. 
    Alpha rents a property on Lease for 20 years receiving a premium of £20,000. In respect of the premium, his taxable property income will be:
    • A. 

      £400

    • B. 

      £7,600

    • C. 

      12,400

    • D. 

      £20,000

  • 14. 
    Alpha rents a property on Lease for 20 years receiving a premium of £40,000. In respect of the premium, his taxable property income will be:
    • A. 

      £400

    • B. 

      £8,125

    • C. 

      £7,600

    • D. 

      £20,000

  • 15. 
    Alpha granted lease to beta on 1.1.2001 for 45 years and received premium of £35,000. Beta granted sub-lease of the same property to Theta on 1.1.2012 for 15 years and received premium of £15,000. In respect of the premium received by Beta, his deemed income will be:
    • A. 

      £3,300

    • B. 

      £7,500

    • C. 

      £10,800

    • D. 

      £12,000