[Avatar]

Tax exemption of £1000 on property allowance

16/01/2019 14:10:46
Hi
How do I claim back this £1000 tax exemption please? I have one flat which is rented out and am a basic tax rate payer
[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1615
  • Offline
  • View profile
  • Send message

Re:Tax exemption of £1000 on property allowance

16/01/2019 14:22:31
Hi,

The £1000 property allowance can be claimed when you come to complete your tax return. The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property. However if your expenses are more than £1000 it would be more beneficial to not claim the property allowance and just claim your expenses.

More information can be found in the link below

Tax free allowances on Property and Trading income


[Avatar]

Tax exemption of £1000 on property allowance

16/01/2019 14:34:52
what happens if you share a property ? do you split the £1000 or get £1000 each ?
[Avatar]

Re:Tax exemption of £1000 on property allowance

16/01/2019 14:39:39
Thanks for your question.

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.

I hope this helps.
[Avatar]

Tax exemption of £1000 on property allowance

16/01/2019 14:43:54
So what happens if I own one jointly and one on my own ?? how do I claim the allowance ?
[Avatar]
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1615
  • Offline
  • View profile
  • Send message

Re:Tax exemption of £1000 on property allowance

16/01/2019 14:54:13
You can claim either the £1000 property allowance or your actual expenses, whichever is more beneficial to you. Both properties will be classed as one property business. For the joint property each owner can have the £1000 property allowance, but as stated it is either the allowance or the actual expenses.