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HMRC internal manual

Property Income Manual

Property allowance: contents: definitions: relevant property income

An individual’s ‘relevant property income’  is their total ‘relievable receipts’ for all of their ‘relevant property businesses’ for a tax year as defined by ITTOIA05/S738BC.

See example at PIM4481 for more information.

It should be noted that if any of an individual’s relevant property income in a tax year is made up of receipts from:

  • A connected employer (see PIM4454)

  • A connected firm (see PIM4456)

  • A connected close company (see PIM4458)

then the property allowance will not be available in that tax year.

So if £1 of rent is received by an individual from a connected firm during the tax year, the individual is not eligible for any of the £1,000 relief for that year.

The property allowance will also not be available against the relevant property income of an individual with rent a room income who is not claiming rent a room relief (See PIM4452)