The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.
If you own a property jointly with others, you’re each eligible for the £1,000 allowance against your share of the gross rental income.
If your annual gross property income is £1,000 or less, you won’t need to tell HMRC. If it’s higher, you’ll need to declare your property income.
You must tell HMRC if you have:
- gross property income over £1,000 up to £2,500 – contact HMRC
- property income over £2,500 – register for Self-Assessment
You can’t use this allowance on income from letting a room in your own home under the Rent a Room scheme – see article Rent a Room Scheme