Meg Saksida explains the circumstances where this valuable tax relief is available and beneficial.
For the larger landlord, with a number of properties and significant property income, the property allowance will not be of interest. Even if the landlord taxpayer only has one property let out, it is likely that the expenses in maintaining that property for rental will exceed £1,000 a year.
How does the property allowance work?
However, for the landlord with a small amount of property income and associated expenses, the property allowance can save up to £450 in income tax (i.e., £1,000 @ 45%).
The property allowance is an automatic application of deductible expenses of up to £1,000 per tax year for certain property income.
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Relevant property income less than £1,000 <>
