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B6.202A Property allowance

An annual property allowance of £1,000 is available to individuals with qualifying property income¹. The government's aim is to simplify the income tax obligations for those who earn small amounts of income from property, for example by renting out a driveway or loft storage, or renting out their house for short periods. Where full relief applies the income does not have to be declared.

The allowance applies to a 'relevant property business'. A relevant property business does not include one in which all the receipts for the tax year are rent-a-room receipts which qualify for rent-a-room relief (see B6.601), one which receives distributions from a property Authorised Investment Fund (see D8.131), or one which receives distributions from a Real Estate Investment Trust (see D7.1127)². Any balancing charges arising from an excluded source of income are also specifically excluded³.

The receipts against which the allowance is set are those from the individual's relevant property businesses (ie, where applicable, a UK one and an overseas one) which would, apart from these provisions,