1.【Answer】D。
The annual allowance for 2016/17 and 2017/18 are not available as John was not a member of a pension scheme in those years.
The answer £40,000 is the current year annual allowance. The answer £135,000 brings forward allowances from all three previous tax years. The answer £35,000 restricts the current year allowance to £10,000.
2.【Answer】D。
Luke should elect for the alternative basis' under rent a room relief, rather the normal basis which would give taxable property business income of £(150 - 20) = £130 × 52 = £6,760.
