Trading and Property Allowances: At a glance

Since 6 April 2017 there have been two £1,000 allowances which may be claimed instead of actual expenses for both property income and trading income.

Subscribers see Allowances: Trading and Property

This is a freeview 'At a glance' guide to the trading and property allowances.

At a glance

There is one allowance for trading or miscellaneous income and one for property income.

Trading allowance

• The allowance is available for trading or other miscellaneous income.
• An individual can choose how to allocate the allowance to different sources of trading and miscellaneous income but can only claim one trading allowance and cannot use the allowance to create a loss.

Property allowance

• Individuals with UK and overseas property income can choose how to allocate the allowance but cannot create a loss.
• The allowance will not apply to income:
  • On which Rent-a-room relief is given.
  • From a property business carried on by a partnership.
  • Where an individual receives a tax reduction for non-deductible interest.
• By sole traders as a deduction against their trading income instead of making a claim for tax relief for Working from home.

You might like our guides to the different accounting systems for the self-employed and landlords:

• Which system for me? See Cash or accruals accounting toolkit
• Which expenses for me? See Flat rate expenses or actual cost toolkit