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• # 114155
• Mon 21 Nov 2016 06:09 PM

Hello All

I'm hoping someone can clarify or correct me with the following. I am currently studying for SAT3 and want to make sure my thinking is right for the following. If a sole trader received rental income and bank interest as part of operating their business (say a business premises with a shop above it let out to a tenant), these values are adjustments to profit in order to find the assessable trading income. Would these values then be part of the relevant Property and Savings & Investments computations?

Thanks in advance for any help you can offer.

Dean

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• # 114184
• Fri 25 Nov 2016 08:17 AM

Hi Dean,

I'm currently studying SAT3 as well.  As i understand it the rental income is seperate to the trading income as it is not related to the main purpose of the business and the bank interest is removed as it is taxed in another way.  I would remove the rental income and bank interest as Non Trading Income.

The rental income would then be processed as rental income and the bank interest would be included in the tax liability calculations.

Hope this helps.

Regards,

Dale

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• # 114186
• Fri 25 Nov 2016 08:48 AM

Hello Dale

Many thanks for your reply. I'm glad you did as I thought that was the correct way to process it but good to hear of someone in a similar position doing it the same.

Cheers

Dean

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