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Posted Thu, 14 Sep 2023 11:23:37 GMT by
Dear Sir, I am a foreigner from commonwealth country who earns rental income from a small unit in Uk. It is shared with my partner. 1) Do I minus £1000 property allowance for each of us for this only unit from our gross rental? I just want to confirm this £1000 is personal allowance correct? 2) what is the actual threshold for tax? Any rental income below £12571.00, do I have to pay tax ? My rental income minus allowable expenses and divide by two ( my name & my partner) is usually less than £1000 per year. 3) I have been submitting self assessment via post, do I still need to keep doing this if my net rental income is less than £1000? Appreciate your advise, thanks
Posted Thu, 21 Sep 2023 14:37:17 GMT by HMRC Admin 20
Hi Seas,

Please see Work out your rental income when you let property.
You can claim the property allowance and get up to £1000 a year tax free property income.  If you claim the
property income allowance you cannot claim a deduction for expenses.  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.
If you are not resident in the UK then you will still be required to complete annual Self Assessment tax
returns to declare your income from property, regardless of the amount of income.
The personal allowance is currently £12570.  
If you have no other income and your rental income is less than £1000 a year then you will not pay any tax in the UK.

Thank you.

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