If your allowable expenses against property income is less than £1,000 you can elect to use the property allowance as partial relief against the income. This allows you to deduct £1,000 from your rental income and is beneficial if your costs are minimal. If the property is owned jointly then each of the joint owners can claim the allowance. If your rents are minimal (less than £1,000) then you can claim full relief and may not even need to complete a self assessment return. You can’t create a loss from the property allowance to carry forward but might be worth considering depending on your circumstances.
Property Allowance
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If your allowable expenses against property income is less than £1,000 you can elect to use the property allowance as partial relief against the income. This allows you to deduct £1,000 from your rental income and is beneficial if your costs are minimal. If the property is owned jointly then each of the joint owners can claim the allowance. If your rents are minimal (less than £1,000) then you can claim full relief and may not even need to complete a self assessment return. You can’t create a loss from the property allowance to carry forward but might be worth considering depending on your circumstances.
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
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