What Is the Property Income Allowance?

This is a tax free allowance of up to £1,000 per year to use against your total property income receipts, including foreign property income.

You can’t use it against income that qualifies for the Rent a Room relief or if you receive any property receipts from any of these.  

When you use the property allowance you can’t deduct any expenses from any of your property businesses or create and carry forward a loss. If your allowable expenses and deductions are more than £1,000, it may be better for you to use your actual costs and leave this box blank.  

If your total property income receipts are £1,000 or less, you don’t need to include them on your tax return. Where your total property income receipts are more than £1,000, and you choose to use the allowance, enter any unused property allowance, up to £1,000.