Tax Returns
STOP PRESS: The remittance basis is abolished from 6 April 2025, although this only applies to foreign income and gains arising on or after that date. The remittance basis rules still apply to unremitted income and gains arising before that date but remitted later. The legislation is included in FA 2025. For more details, see the Abolition of the remittance basis from 2025/26 guidance note.
This guidance note details property allowance which means that the first £1,000 of gross property income is exempt from income tax under certain conditions.
The £1,000 allowances for property is separate to the trading allowance, for full details of the trading allowance, see the Trading allowance guidance note. The allowances are only available to individuals, and an individual may receive both types of allowances.
The property allowance works in a similar way to rent-a-room relief, in that for the property allowance the first £1,000 of gross property income is exempt from income tax.
If the income exceeds £1,000, the taxpayer has a
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