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Tax ReliefUK-wide

Property Allowance

HM Revenue & Customs

Description

Covers the first £1,000 a year of property income tax-free — useful for smaller-scale letting like renting out a driveway, garage, or a patch of land, rather than a full tenancy. It can't be combined with claiming your actual expenses on the same income, and can't be used alongside the Rent a Room Scheme for the same property.

Amount

£1,000 tax-free property income per year

Deadline

Rolling / no fixed deadline

Eligibility summary

  • Available across the whole UK (England, Scotland, Wales, and Northern Ireland).
Notes
Cannot be combined with claiming actual expenses against the same income, and cannot be used alongside Rent a Room relief on the same income.

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You can also do this yourself for free via the official source

How to apply

Automatic if income is under £1,000; report via Self Assessment if you exceed it.

View official source

Last verified: 1 August 2026. See the footer disclaimer — this is general information, not financial or tax advice.