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  • ACCA F6 Key Notes 2012 Tax Year

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    Haseeb Sethy
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    This document provides key notes for the ACCA F6 exam for 2012. It discusses the tax year, which runs from April 6, 2011 to April 5, 2012. It also outlines the tax treatment of property and rental income, noting that property income is taxable on an accrual basis, while expenses fall into two categories: revenue expenditures like repairs and maintenance, and capital expenditures. It provides details on what expenses can be deducted, such as bad debts, taxes, agent fees, and a 10% wear and tear allowance for furnished accommodations.

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    ACCA F6

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    This document provides key notes for the ACCA F6 exam for 2012. It discusses the tax year, which runs from April 6, 2011 to April 5, 2012. It also outlines the tax treatment of property and rental income, noting that property income is taxable on an accrual basis, while expenses fall into two categories: revenue expenditures like repairs and maintenance, and capital expenditures. It provides details on what expenses can be deducted, such as bad debts, taxes, agent fees, and a 10% wear and tear allowance for furnished accommodations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    117 views3 pages

    ACCA F6 Key Notes 2012 Tax Year

    Uploaded by

    Haseeb Sethy
    This document provides key notes for the ACCA F6 exam for 2012. It discusses the tax year, which runs from April 6, 2011 to April 5, 2012. It also outlines the tax treatment of property and rental income, noting that property income is taxable on an accrual basis, while expenses fall into two categories: revenue expenditures like repairs and maintenance, and capital expenditures. It provides details on what expenses can be deducted, such as bad debts, taxes, agent fees, and a 10% wear and tear allowance for furnished accommodations.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    ACCA F6 KEY NOTES FOR 2012

    THE FISCAL YEAR OR TAX YEAR IS FROM (6TH APRIL 2011- 5TH APRIL 2012)

    PROPERTY/RENTAL INCOME:
    ANY INCOME WHICH IS TAXABLE ON ACCRUAL BASIS, IT MEANS THAT WE CAN PRO-RATE THAT INCOME. ANY INCOME WHICH IS TAXABLE ON CASH BASIS, IT MEANS THAT WE CANNOT TIME APPORTION INCOME. PROPERTY INCOME IS TAXABLE ON ACCUAL BASIS. EXPENSES ARE ALSO INCURRED,WHICH ARE OF TWO TYPES:

    1. REVENUE EXPENDITURE:
    REPAIRS MAINTENANCE DECORATION RENOVATION

    ONLY BAD DEBTS WRITTEN OFF,PROVIDED THAT; TENANT HAS LEFT THE PROPERTY LEGAL PROCEEDINGS HAVE BEEN STARTED FOR RECOVERY.

    TAXES ARE NOT EXPENSES BUT WATER AND COUNCIL TAX MUST BE TREATED LIKE EXPENSE. AN AGENT,ACCOUNTANT OR LAWYERS FEE,ACCOUNTANT,NEWSPAPER AD FOR THE RENT IS DEDUCTIABLE (NEWSPAPER AD FOR SALE OF PROPERTY IS NOT DEDUCTIABLE). INCASE OF FURNISHED ACCOMMADATION,10% WEAR AND TEAR ALLOWANCE IS ALLOWED. WEAR AND TEAR ALLOWANCE=(RENT-BAD DEBTSWATER AND COUNCIL TAX).

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