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HMRC internal manual

PAYE Manual

PAYE operation: review of claims and deductions: income from property

You should examine all cases where

  • The rents received are over £2,500


  • The expenses claimed are more than 50 per cent of the rents received

Note: Where the rents received exceed £10,000 set the case up in Income Tax Self Assessment (ITSA) (or reactivate any dormant ITSA record) and update the record so that a tax return is issued in April next year for CY.

Further information is provided in the Property Income Manual. The following subjects are of particular relevance

Subject Section
Deductions PIM2000 - 2340
Rent a room PIM4000 - 4060
Furnished holiday lettings PIM4100 - 4130
Losses PIM4200 - 4250