Form 12 2008 - questions on rental income

[Bucketman]

Hi,

First up, thanks for taking the time to read this post, and much thanks to any replies. I've seen very similar posts to this one but I still have a few questions.

I'm looking at completing Form 12 for rental income in 2008. I know I'm late completing it but that's okay.

I'm getting a bit confused about the "Capital Allowances" part of it. There are 5 items on Page 5 that I'm not too sure about:

1. Capital Allowances forward from a prior year:
Is this the figure that would have been entered for 2007's "Excess Case V Capital Allowances" as covered below?

2. Capital/Balancing Allowances for the year 2008

Capital Allowances cover fixtures and fittings, but what counts as fixtures and fittings? Does it include the contents of the house such as carpets, curtains, kitchen presses, furniture, shelving, etc?

Let's take the hypothetical situation that I'd bought a house for say 108K in 2007 which included a fitted kitchen valued at 8K. If I lived in the house for 1 year and then started renting it at the start of 2008, would I then be able to claim capital allowances of 1K (8 * 12.5%) for each year, up to a limit of 7 years? I.e. my "Capital/Balancing Allowances for the year 2008"would be 1K?

3. Capital Allowances available for carry forward or offset

Is this is the capital allowances which can be claimed for in years subsequent to 2008? For example, if I spent 800 on capital expenditure in 2004 and claimed 12.5% of this each year from 2004, then in 2008 I would have four years left to claim (2009 through to 2012). The amount to enter would b 800 * 4 * 12.5% = 400.

4. Excess Case V Capital Allowances
Isthis: (Net rental income) less ((Capital allowances forward from a prior year) plus (Capital/Balancing Allowances for the year 2008)).

In other words, it's the loss made which is solely related to capital allowances?

5. Loss forward from a prior year
Is this the total loss from the previous year for your rental income?

Is it (Net Rental Loss for 2007) less (Capital Allowance for 2007)? Or is it just (Net Rental Lost for 2007).

Thanks in advance for any help.

 

[Bucketman]

Found a good explanation elsewhere on the board for 4. Excess Case V Capital Allowances:

Case V ( Case 5 ) is the section of the tax code which relates to rental income. Excess Case V Capital Allowances are wear & tear allowances on furniture/fitting etc. where they exceed net income and are therefore available to carry forward to next years rents as a deduction. Unless you had claims for fixtures/fittings this is not likely to apply.

Seems to be in line with what I thought it was.