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, be assessable as property income under ITTOIA 2005, Pt 3, Ch 3 (ss 268–275), so excluding, for example, adjustment income and post-cessation