HMRC Property Income Allowance

[eɪʧ-ɛm-ɑː-siː ˈprɒpəti ˈɪnkʌm əˈlaʊəns]

Term

Summary:

HMRC Property Income Allowance is a tax-free £1000 allowance for rental income. It cannot be used in conjunction with other allowances for rental income.

More detail:

HMRC Property Income Allowance is a tax relief scheme in the United Kingdom, which provides individuals with a tax-free allowance of up to £1000 on their rental income. This reduces their tax liability. If an individual receives more rental income than £1000, they must declare it and pay take on the amount about allowance.

If your annual rental income is below the allowance, there is no requirement to declare the income to HMRC.

You can't claim this allowance in conjunction with other allowances for rental income (such as the Rent a Room Scheme) so it may not be the most tax-efficient choice for certain individuals.

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