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:
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.
Your rental income may mean that the property income allowance is not the most tax-efficient approach for you to take. For a bespoke consultation, contact our experts and arrange a meeting to discuss your options.
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