Treatment of expenses incurred by trustees
A UK IIP Trust receives rental income and in addition to normal expenses of a rental business has incurred professional fees in respect of the first lease of a property for more than 12 months (not allowable).
How are these expenses treated in the trust tax computations please? Are they deductible as trust management expenses? In particular, what will appear on the R185?
Suppose taxable rental profit is £3,000 and the disallowed expenses are £2,000. Tax payable by the trustees is £600, so will the R185 show £2,400 or £400 net?
In general, can an R185 certificate show a greater amount than the beneficiary can possibly receive?
I'm going round in circles on this one.
- Error in 11-12 return done by previous accountant, do we have to offer them to correct or can I do and client reclaim cost 86 3
- accruals and prepayments please help anyone out there 456 19
- Is there difference between when you state you will provide a specific provison and you will make a specific provision of £3200 against a partcular debt? 138 6
- When will Private Principal Residence Relief cut will start? 549 11
- Can rental income ever be trading income? 244 3
- Benefit In Kind Accommodation 86 1
- Tax Return Deadlines 165 3
- Foreign income for self employed 103 1
- tax credits 61 4
- Whats the best way to keep my accounts? 600 18
- Sage help...written off bad debt, done year end now bad payer wants to start to pay 49 2
- Who owns SAGE Data? 482 10
- Sage 50 Customer Statements and Running Balances 193 1
- EC VAT 222 10
- Land Opt to Tax - VAT scope 216 7
- Musician deductible expenses 93 1
- Invoice or journal for inter-company transactions 101 1
- How do I clear transaction history - Sage 50 v9 282 8
- Flat rate vat error 346 7
- Dividend paid to non-shareholder 546 13
- Desperately seeking Susan, Sam or anyone with any other name 851
- Experience with Islamic investor following Sharia-compliant rules? 510
- Darwinpay Partnership Assessment 323
- How to format a stock book 297
- Tax efficient holding company structure 235
- S464A Charge to tax: conferring benefit & BIK 232
- Investment property company accounts template 221
- Outlook 2007 with business contact manager not loading on new laptop 215
- auto enrolment - calculation of first pension deduction 182
- RTI and Annual Directors Salary 153