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HMRC internal manual

Property Income Manual

Property allowance: contents: computations: full relief

An individual qualifies for Full Relief for a tax year if they have relevant property income which does not exceed the individual’s property allowance for the tax year, and the individual has not made an election for Full Relief not to apply.

If an individual qualifies for Full Relief and their relevant property income includes receipts from one or more property businesses then the relievable receipts and the associated expenses of each property business for the tax year are not brought into account.

Individuals can elect for Full Relief not to apply when it is more beneficial for them to complete their self-assessment return in the normal way. This may be the case if they would otherwise have a loss from one or more property business.

See example at PIM4482 for an illustration of when it is beneficial for Full Relief not to apply.