Tax free allowaance of £1000 on rental income?

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    Tax free allowaance of £1000 on rental income?

    Hello.

    If you look at thnis link to HMRC they talk about a tax free allowance https://www.gov.uk/guidance/tax-free...trading-income
    Does anyone know if this is in addition to allowable expenses or instead of? I think instead of looking at the text, but not 100% sure...
    "If your annual gross trading or property income, from one or more trades or businesses is more than £1,000 you can use the tax-free allowances, instead of deducting any expenses or other allowances."
    Cheers

    #2
    ......"instead of..."
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

    Comment


      #3
      Like I said, it does seem obvious, but without experience it is not 100% certain that the words are interpreted correctly. So if a year went by with no expenses then presumably the first £1000 of rental income is not taxed then??

      Comment


        #4
        No insurance,no repairs, no travel, no mortgage, no voids, no ''phone calls, no letters, no office costs?
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

        Comment


          #5
          https://www.gov.uk/guidance/tax-free...trading-income

          If your annual gross property income is £1,000 or less, from one or more property businesses you won’t have to tell HM Revenue and Customs (HMRC) or declare this income on a tax return.

          If your annual gross trading income is £1,000 or less, from one or more trades you may not have to tell HMRC, however there are circumstances when you must register .

          You must keep records of this income. This is known as ‘full relief’.

          If your annual gross trading or property income, from one or more trades or businesses is more than £1,000 you can use the tax-free allowances, instead of deducting any expenses or other allowances.

          Suggest you click on above link to read the full version.

          I think it means for gross rental income £1000 or less , you can claim up to £1000 tax free allowance instead of deducting expenses .

          Comment


            #6
            Originally posted by theartfullodger View Post
            No insurance,no repairs, no travel, no mortgage, no voids, no ''phone calls, no letters, no office costs?
            OK, lets say expenses were £800. Does that mean instead of deducting these (which means doing maths and receipts) from the income you can instead just deduct £1000 'full relief' ?

            thanks

            Comment

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