HMRC Property Income Allowance

The HMRC property income allowance is a flat £1,000 tax-free allowance that you can use against your rental income. You can’t claim it in conjunction with any other rental income allowances (e.g. the Rent-a-Room scheme) so you should consider whether it’s the most tax-efficient relief you can claim.

You are eligible to claim the property income allowance if:

  • You’re a live in landlord
  • You rent out property that you don’t live in
  • Your expenses are less than £1,000 per year
  • You rent out property via Airbnb
  • You’re not claiming other tax reliefs on your rental income
  • You own a property jointly with someone else – you can both claim £1,000 per year

Be aware that if your annual rental income is less than £1,000, you don’t have to declare this to HMRC, nor do a tax return.

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