Property allowance

I believe I can claim £1000 property allowance against the rent I receive from my single rental property. I have only recently discovered this. The gross rental income is £12000 p.a. Is this allowance applied automatically? I cant see it referenced anywhere on my self assessment account on the gov. Website

Hi
Thank you for your question.
The use of the property allowance is optional and may not suit an individual's circumstances, for example if they have made a loss or their actual allowable trading expenses are more than a £1000.
An individual cannot claim both the property alowance and actual expenses.
They can only claim one or the other. Property allowances cannot be claimed for trades or property businesses carried on in partnership, or income that qualifies for relief under the rent a room scheme.
An individual cannot claim the trading allowance or property allowance if their trading income or property income includes any income from an employer or a spouse / civil partner's employer, a partnership in which they or a connected party are a partner, or a close company in which they or an associate are a participator.
More information about the property allowance can be found at :
Property allowance
and
Property allowance
 

Thank you. I’ve had this property 3 years now and the expenses I’ve incurred each year are around £2k. I’ve claimed for these expenses in my self assesments . So I understand that I can’t claim the property allowance ? can I suggest that this is made more clear in the guidance as I could not find the answer in anything that I read.

Hi
Thank you for your question.
You would be correct in the fact that for each year, you are allowed to claim £1,000 as Property Income Allowance, or if you have expenses exceeding £1,000, then depending on which is more beneficial to yourself, you may claim on expenses instead.
However, you may only claim one of these per year.
Attached is some guidance linked from gov.uk which highlights tax-free allowances on property and trading income, as well as explaining how the allowance may be used to your advantage:
Tax-free allowances on property and trading income

HI, I have a related question. If I choose to claim the £1,000 property allowance , do I just leave the Property Expense section blank on the SA105 form? Thank you.

Hi Tilly,

If you claim the property trading allowance, all other expenses boxes should be left blank.

Thank you.

Hi, I've only just become aware of the £1,000 Property allowance. From the 2017/2018 tax year onwards, I've been claiming my property rental expenses which were a lot less than £1000 for each of those years. If I understand it correctly, I'd have been better off claiming the £1,000 Property allowance instead. I was taxed on £3300 where as if I'd claimed Property allowance I'd have only been taxed on £2,300. Is it possible to change claims for rental expenses to Property allowance of £1000 for previous tax years? It seems to me that if rental expenses are less than £1000 then it should automatically be suggested that you claim Property allowance instead. I think I've paid more tax than I should have and would appreciate any advice on how to rectifying that. Thanks.

Hi,

In terms of the property income allowance, you are entitled to choose year on year which is more beneficial to yourself depending on the amount of expenses you have incurred.  

Unfortunately, due to individual circumstances, HMRC are unable to automatically suggest which of the two to claim as other factors may need to taken into consideration.

We would advise for previous years if amendments are to be made that overpayment relief may be claimed within four years of the end of the relevant tax year or accounting period. 

SACM12150 - Overpayment relief: Form of claims

Thanks

Thanks for the reply. I can't find a link to an actual form via the "SACM12150 - Overpayment relief: Form of claims" link you posted. Is there not an actual form and I just have to send an "Overpayment relief claims" letter to: - PAYE Self-Assessment HM Revenue and Customs BX9 1AS

Hi,
I would advise you that there is not an actual Overpayment Relief claim form as such so you would just need to submit a letter claiming Overpayment Relief for the tax years in question.
Please ensure that this  claim letter is in the correct format as per the guidance at:
SACM12150
Thankyou

Good morning, This tax year I have decided to use £1000 property allowance against the rent I receive from my single rental property. I have also carried from previous years (but not this tax year) tax reducer for finance costs such as mortgage interest for a residential property ("unused residential property finance costs brought forward "- SA105 2023 box 45). Can I still bring that cost forward or use of property income allowance automatically withdrawn this option? Best regards, Greg

Hi Greg,
Thank you for your question. If you claim the £1000 property income alownace you cannot also claim expenses against all other property income, ie unused residential property finance costs. Further guidance is held on this topic in your HMRC You Tube channel. 
Thank you.

Good evening, I am a qualified plumber and electrician. I also rent out property. I know that repair and maintenance costs are allowable expenses for property income. Can I still claim the allowable expenses for maintenance and repairs although I am the one carrying out the maintenance and repairs? Thank you.

Hi serycrissy,
Repairs and maintenance are classes as revenue expense and can be set off against your rental income in the same way as if you had paid for the work to be carried out.
Further information on allowable expenses is available at:
Work out your rental income when you let property
Thank you. 
 

My wife and I own a property and we are thinking of renting it out. We do not expect each persons share of the rental income to exceed £2500. We do not think we will have too many expenses to claim relief against. My wife is a none tax payer and I claim a portion of her tax allowance. The marriage allowance. Can we both claim the £1,000 property allowance as well? If she can, and I cannot can I still claim relief against my share of expenses?

Hi shb125,
The £1000 property income allowance can be claimed by each of you to set against your own share of rental income.
This is an either/or allowance and you can claim this or actual expenses, whichever is more beneficial.
More information can be found here:
Property allowance
Thank you. 
 

Hello, I received rental income on February and March 2024 (just over £1000), and got allowable expenses for 2023/2024. Could you please let me know if I can choose to claim the £1000 property allowance for 2023/2024, and carry forward these allowable expenses (property expenses + 20% of my finance costs) to 2024/2025 in order to claim them on rental income from the same property? Thank you in advance for your help.

Hi LeaLcg,
No, unfortunately, you are not able to do that.
You have the choice of claiming the property income allowance of £1000 or claiming expenses.
You cannot carry expenses forward into another tax year.
You can only claim the expenses in the tax year that they arise.
If this means that your expenses are greater than your property income, you have made a loss.
You can carry forward the loss into a future tax year and set it against a profit in a future tax year.
As your gross profit is over £1000, you meet the criteria for completing a Self Assessment tax return.
If you are not registered for Self Assessment yet, you can do so here:
Check how to register for Self Assessment
Thank you. 

 

My husband and I own a property which we rent out jointly and complete self assessments each year. I asked our accountant about if we could both claim the property allowance instead of claiming expenses on the property. His reply was ‘it’s not an allowance, it relates to people who dabble on commercial ventures, not official businesses or landlords, who earn less than £1k a year; HMRC in such cases do not require tax’. I can’t see this written on the gov.uk website. Is he correct please?

Hi Chippers,
Thank you for your question, please see guidance available at: Property allowance this guidance advises- ‘The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.
If you own a property jointly with others, you’re each eligible for the £1,000 allowance against your share of the gross rental income.’ 
It also provides guidance of when the property income allowance cannot be used.
Thank you.