Use the separate data entry section for chargeable premiums arising on leases and for reverse premiums.
From 2010 and onwards, EEA furnished holiday lettings must be included
on the UK land and property pages. When the option Furnished holiday let
(EEA) is ticked, IRIS Trust Tax will automatically include the income
and expenses on the UK Land and Property pages (SA905 pages) instead of
the Foreign pages (SA904 pages).
Address
|
The first line of the address must be entered. |
Country |
The country must be entered as it will be printed on the Tax Return. |
Dates
|
Not compulsory. If entered, the date of acquisition must be before the end of the tax year and the date of sale must be after the start of the tax year and after the date of acquisition. |
More than One Property |
Tick this box if all property income is from the same country and has been entered as one property record. If more than one property record has been entered and all the income is from the same country this box will be automatically ticked on the Tax Return. |
Income Unremittable |
If the income is not remittable to the UK, tick this box. This will automatically preclude any claim for FTCR and the Tax Return will not show anything in the amount chargeable column, in other words, the amount will not filter through to the tax computation. |
Wear and Tear Allowance |
Tick this box to claim 10% wear and allowance. This is automatically computed @ 10% of the net rent (after deducting type 1 expenses (council tax, water rates)). Wear and tear allowance can only be claimed for furnished lettings (not furnished holiday lettings). It is not possible to claim wear and tear allowance and furniture renewals. |
Foreign Tax Credit Relief |
Tick to claim foreign tax credit relief (FTCR) which is nearly always beneficial. The Trust must be resident in the UK to make a claim. FTCR will give a tax credit for the lower of the foreign tax paid and the UK tax payable on that source of income. |
Once the property has been set-up, details of the income and expenses received can then be entered. On the lower half of the screen there are two alternatives on the tabbed tree view: Income and Expenses. The list views work in the same way as all other list views. The only difference is that the <Tab> key will cycle to the tabs (Income and Expense) as well as the two list views and the tree view so that keyboard users won't have to reach for a mouse!
It is possible that a group of properties, whose income is from the
same country, may have been entered under a single heading, for example
a number of flats in one building. In these cases, it may be helpful to
enter several income records, for example one for each flat. It is also
possible to enter details of rent from each tenant. In practice most users
will enter a single income record containing the total for the year.
Description |
IRIS will insert the word 'Rent' unless overwritten by the user. |
Rent |
Include rental income and any wayleaves receivable in the year. Where the property is let jointly enter the Trust's share of the income. |
Balancing charge
|
If there is a profit on the sale of an asset where capital allowances have been claimed enter the profit (the balancing charge) here. |
Other income |
Include any non-rental income, for example, rent charges, ground rents, feu duties, income arising from the grant of sporting rights, income arising from permitting other to tip waste on the land, income where no lease licence is created (such as a film crew paying to film on the land), grants from local authorities for repairs and income from Enterprise Zone Trusts (interest from EZTs should be entered as other interest). This is not an absolute list of other income types. |
UK Tax paid |
Enter any UK tax deducted at source. Do not include any payments on account that may have been made under Self Assessment. |
Foreign Tax paid |
Enter the amount of foreign tax paid. Where there is a taxable taxation agreement in force, the amount entered must be capped at the maximum rate of foreign tax payable under the agreement. If the tax paid does exceed this, the Trust or Estate should seek a refund of the excess from the appropriate overseas tax authority. |
If the total property income is less than £15,000 a single type 0 expense may be entered for the total expenses.
Expenses may be claimed for costs incurred for the sole purpose of earning business profits. The following cannot be claimed: trustee's or personal representative's personal expenses; capital costs such as fees relating to the purchase of the land or property; the cost of purchasing machinery; furnishings or furniture; any loss on sale.
| Type | IRIS includes a series of standard expense types. These expense types map to specific boxes on the Tax Return.
|
Description |
The 'type' description will be inserted automatically if this is left blank. |
| Amount | Enter the allowable expense or full expense (see private use below). |
| Private Use | Either enter the allowable net expense in the amount field or enter the full expense and enter the disallowed portion here. |
Edit Return screen