Meg Saksida outlines the property allowance and points out when it is a good idea.
The property allowance was announced in the Autumn statement 2016 with the policy objective to reduce tax complexity for small landlords and the simplification of the taxation of small property receipts.
At £1,000 a year, the property allowance is a standard amount, which can be offset against property income received, instead of the exact precise costs and expenses that a taxpayer has actually incurred. A choice can be made for every tax year as to whether it is in the interests of the landlord to use the property allowance for that tax year; and a different option can be chosen every year.
Get your own!
If a property is held jointly, each taxpayer owner has their own property allowance and the election to use it or not can be chosen by one of them