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Where Taxpayers and Advisers Meet

Property Income Allowance

Corazones
Posts:15
Joined:Wed Aug 06, 2008 4:08 pm
Property Income Allowance

Postby Corazones » Fri Oct 20, 2023 1:05 pm

My wife and I rent out two properties between us. We declare property income and expenses in the relevant part of our online tax return.

I have just read a mention of the Property Income Allowance but this is neither mentioned nor allowed for on the tax return. I assume it is taken into account by HMRC when calculating our tax liability? If not, how should we incorporate it when declaring expenses? They are sometimes under and sometimes over £1000 each. Some advice on this would be greatly appreciated.

darthblingbling
Posts:697
Joined:Wed Aug 02, 2017 9:09 pm

Re: Property Income Allowance

Postby darthblingbling » Fri Oct 20, 2023 1:44 pm

You either claim it or claim expenses, you can't have both .

Should be a box on the tax return if you want to claim it.

Jholm
Posts:348
Joined:Mon Mar 11, 2019 4:22 pm

Re: Property Income Allowance

Postby Jholm » Fri Oct 20, 2023 4:18 pm

Just to add the allowance is per property business per person.

With that in mind, you will both be entitled to a £1,000 allowance but this will be offset against gross rents from both properties.

Prob better to claim actual expenses.

bd6759
Posts:4234
Joined:Sat Feb 01, 2014 3:26 pm

Re: Property Income Allowance

Postby bd6759 » Sat Oct 21, 2023 9:46 am

I have just read a mention of the Property Income Allowance but this is neither mentioned nor allowed for on the tax return.
Page 1 of the guidance notes, “Property income allowance”!!

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1144423/SA105_Notes_2023.pdf

Corazones
Posts:15
Joined:Wed Aug 06, 2008 4:08 pm

Re: Property Income Allowance

Postby Corazones » Sun Oct 22, 2023 10:56 am

Thanks to all for your advice. You seem to be suggesting it's best to continue as we always have, it seems - listing all expenses even if they total well under £1000 each. I just had the impression that we could somehow claim £1000 each even if our costs in any year were minimal? We have no professional fees or agency charges for a start, just insurances, safety certificates and a few repairs.

D&C
Posts:146
Joined:Mon Nov 25, 2019 11:35 pm

Re: Property Income Allowance

Postby D&C » Sun Oct 22, 2023 11:27 am

With all due respect you seem to be making heavy weather of this!

You can either claim eligible expenses OR the property allowance. The choice is yours.

And it is called Self Assessment for a reason. You decide which it is not HMRC. If you claim expenses of say £300 then that is your choice, it is not upto HMRC to decide you should have claimed the property allowance instead.

I think this part of your original post shows you need to take a deep breath and start again as you are missing some blatantly obvious things. For example what was it you didn't understand about darthblingbling's post on Fri Oct 20, 2023 1:44 pm??

I have just read a mention of the Property Income Allowance but this is neither mentioned nor allowed for on the tax return

Corazones
Posts:15
Joined:Wed Aug 06, 2008 4:08 pm

Re: Property Income Allowance

Postby Corazones » Mon Oct 23, 2023 11:56 am

Thanks, D&C. You are quite correct; I can only say in my defence that I tried opening that long link from the forum and it didn't work. Now I have persisted by copy-and-paste, and it answers all my questions (and many more). What's more it includes further links which were equally helpful.


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