What is the property income allowance?

What is the property income allowance? The property income allowance makes the first £1,000 of property income tax-free each tax year, including 2026-27. Over £1,000, you can deduct £1,000 instead of your actual expenses, whichever gives the lower profit. Usually not. GOV.UK says you do not need to tell HMRC about gross property income of £1,000 or less, unless you cannot use the allowance. Between £1,000 and £2,500 you contact HMRC. GOV.UK's renting guidance says you need a Self Assessment return if rental income is over £2,500 after expenses or £10,000 before them. No. If your income is over £1,000, you choose one: deduct the £1,000 allowance from your gross rent, or deduct your actual expenses. You cannot do both. Yes. GOV.UK says each joint owner can claim the £1,000 allowance against their own share of the gross rental income. Read the full answer, with every source, at rightotax.co.uk.