Property allowance

Published 27th March 2017

The property allowance is available from April 2017.

The property allowance is an allowance of £1,000 that may be used instead of the normal or usual method of calculating deductions from rents etc. It will only be of benefit to those with very low outgoings.

Example 1
Alan lets out his car parking space for £800. He has no outgoing costs. He may deduct £800 property allowance. There will be no tax to pay on the rent.

Example 2
Brian lets out his garden shed for £1,200. He has only £50 of expenses but he may deduct the full £1,000 property allowance and is taxed on £200.

Example 3
Charles rents his garage for £5,000. He has expenses of £1,200. He may use the property allowance but his taxable profit will be lower (and his tax will be lower) when claims the actual expenses as a deduction from rent.

The newsletters on this website are believed correct at the time of publication. They may not include subsequent changes in the law. If the subject matter is of interest you should contact us to see if there is a relevant update.

Taxation is a complicated subject and is subject to change. This article is provided for general guidance only. You should only rely on advice prepared specifically for you. Neither the writer nor Landlords Tax Services Ltd can be held liable for any loss arising from any act or omission by you as a result of your understanding of this article.

Landlords Tax Services Ltd, specialises in the taxation of residential property income and gains and around half its clients are resident outside the UK. If you would like specialist help contact Maurice Patry F.C.A. at or for more information visit our website at Landlords Tax Services Ltd