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What is Property allowance?
The property allowance is a £1,000 tax free allowance for property income. If your gross property income is £1,000 or less you do not need to report it; above that, you can deduct £1,000 instead of your actual expenses.
Why it matters to landlords
It suits people with small amounts of property income, such as renting a driveway. Most landlords with a mortgage and real running costs are better off claiming actual expenses.
You cannot use it alongside rent-a-room relief on the same income, and it cannot be used against rent from a company or partnership you are connected to.
You choose each year whether to use the allowance or claim actual costs, so compare both before filing.