Query regarding £1000 property allowance

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    Query regarding £1000 property allowance

    Hi, if you claim the £1000 property allowance does this mean you cannot claim any additional allowable expenses, such as interest on mortgage, buildings insurance etc
    Would it only be feasible to claim if your full rental income is under £1000 a year?
    Rental income on my property is £5400 a year but mortgage interest is over £3000 a year. Therefore am I right in thinking if I claim the £1000 property allowance I can not claim any of the mortgage interest?
    any advice appreciated.

    #2
    if your gross income is above £2500, you have to report the income by self- assessment return. You can choose to claim the £1000 property allowance or claim actual expenses, whichever is higher.

    If the gross income is below £1000, then your property allowance will cover the income and so it is not required to report this small income to Tax office.

    Comment


      #3
      Hi, just for clarification, I read these as one allowance of £1000 per portfolio, not per property? Is that your take?

      Comment


        #4
        The £1000 tax allowance can be claimed by each person if his/her gross rental income is below £1000 over the year.

        Comment

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