Property Allowance of £1000 from 17/18

pinklady21

I have been reading this:
https://www.gov.uk/government/publications/income-tax-new-tax-allowance-for-property-and-trading-income/income-tax-new-tax-allowance-for-property-and-trading-income

I am easily confused (!), so would be obliged if someone far better versed in these matters than I am could confirm:
Am I correct that:
1. If income from property is less than £1000, it does not need to be declared?
2. If it is more than £1000, then a single deduction of £1000 may be made from the income instead of calculating expenses?
3. That individuals may still calculate their tax liability in the usual way with the profit being the income from property, less allowable expenses? and declaring that via SA?

Thank you!

00ec25

yes,
in practice it means that if your allowable expenses are less than £1,000, but your income is more than £1,000, it will be more tax efficient to claim the allowance instead of paying tax on the "normal" profit.

obviously as stated you cannot claim the allowance if you have lodgers and are already claiming the rent a room allowance instead

also if your expenses are more than your income it may still be better to claim the tax loss so you have it available for use against profits ,made in the future rather than claiming the allowance and thus not having any losses carried forward

rather than the link you posted, which was the proposal stage. there is now "proper" guide to the rules as enacted in legislation
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Luckster11

Quick question does this apply to per property, £1,000 allowance on each property if expenses not claimed. Or just a combination, gov site is confusing me.

I have a number of property’s let’s say 6.

So would I have a potential £6,000 relief?

Please can this be verified.

anselld

Luckster11 wrote: »

Quick question does this apply to per property, £1,000 allowance on each property if expenses not claimed. Or just a combination, gov site is confusing me.

I have a number of property’s let’s say 6.

So would I have a potential £6,000 relief?

Please can this be verified.

£1000 Per person.