Two separate £1,000 tax allowances for property and trading income were introduced in April 2017. If you have both types of income highlighted below then you can claim a £1,000 allowance for each.
The £1,000 exemptions from tax apply to:
Where each respective allowance covers all the individual’s relevant income (before expenses) the income is tax-free and does not have to be declared. Taxpayers with higher amounts of income will have the choice, when calculating their taxable profits, of deducting the allowance from their receipts, instead of deducting the actual allowable expenses.
You cannot use the allowances in a tax year, if you have any trade or property income from:
You cannot use the property allowance if you:
If you are considering if you can claim these allowances, please let us know and we can investigate for you.
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