Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • pinklady21
    • By pinklady21 9th Apr 18, 5:47 PM
    • 756Posts
    • 562Thanks
    pinklady21
    Property Allowance of 1000 from 17/18
    • #1
    • 9th Apr 18, 5:47 PM
    Property Allowance of 1000 from 17/18 9th Apr 18 at 5:47 PM
    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!
Page 1
    • 00ec25
    • By 00ec25 9th Apr 18, 7:02 PM
    • 7,082 Posts
    • 6,786 Thanks
    00ec25
    • #2
    • 9th Apr 18, 7:02 PM
    • #2
    • 9th Apr 18, 7:02 PM
    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
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,099Posts Today

6,948Users online

Martin's Twitter