½Û×ÓÊÓƵ

Property allowance


Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Owner-Managed Businesses
Guidance
tag-icon Tax Returns

Property allowance


Produced by Tolley in association with of Crane Dale Tax, part of AMS Group
Owner-Managed Businesses
Guidance
tag-icon Tax Returns
imgtext

STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.

This guidance note details property allowance which means that the first £1,000 of gross property income is exempt from income tax under certain conditions.

The £1,000 allowances for property is separate to the trading allowance, for full details of the trading allowance, see the Trading allowance guidance note. The allowances are only available to individuals, and an individual may receive both types of allowances.

The property allowance works in a similar way to rent-a-room relief, in that for the property allowance the first £1,000 of gross property income is exempt from income tax.

If the income exceeds £1,000, the taxpayer has a

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL NOW
Rob Durrant-Walker
Rob Durrant-Walker

Tax Director at Crane Dale Tax , Corporate Tax, OMB, Personal Tax

Rob is a cross-tax advisor with a particular focus on property tax planning, and business structure planning for OMB’s. He provides tax advice to other accounting firms, balancing commerciality, ethics, and understanding complexity. His 30+ years of experience start at the Inland Revenue in Hull. After completing his ATT and CTA by 1999 with PKF, he subsequently worked at KPMG and UHY prior to managing the business tax team as a director at Garbutt + Elliott. Rob is now Tax Director at the independent tax consultancy, Crane Dale Tax. He is a regular author for Taxation magazine with many articles and Readers Forum contributions since 2005, and he contributes as a virtual member to the CIOT Property Tax technical committee. Rob works remotely from Vancouver in Canada.

Powered by
  • 20 Mar 2025 16:10

Home/ ½Û×ÓÊÓƵ Guidance/ Owner-Managed Businesses / Running a property business

Popular Articles

Personal Tax

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more Read more
Employment Tax

Ministers of religion

Ministers of religionMost ministers of religion or members of the clergy are either office-holders or employees and so their earnings are taxable under ITEPA 2003 as employment income and are subject to Class 1 National Insurance.For the purposes of the tax system, a minister does not have to belong

14 Jul 2020 12:14 | Produced by Tolley Read more Read more
Value Added Tax

Supplies of goods and services connected with education

Supplies of goods and services connected with educationThis guidance note provides an overview of the VAT treatment of goods and services provided in connection with supplies of education. This should be read in conjunction with the following guidance notes:•Supplies of education•Local authority

14 Jul 2020 13:44 | Produced by Tolley Read more Read more