Answers · UK 2025/26
What is the property income allowance in 2026/27?
The property income allowance is £1,000 per year, allowing you to earn up to £1,000 from property tax-free (or use it instead of deducting actual expenses).
Full answer
The £1,000 property income allowance lets you earn up to £1,000 of gross property income tax-free. If your gross rental income is under £1,000, you do not need to report it. If over £1,000, you can choose to deduct the allowance (£1,000) instead of actual expenses -- beneficial if your expenses are under £1,000. Each co-owner gets their own £1,000 allowance. It cannot be combined with the Rent a Room relief.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.