The 2017 Finance Act enacted provisions for two new separate annual allowances of £1,000 each, for individuals, but not in respect of partnership income from a trade, professional or property business. These took effect from 6 April 2017. The allowances are:

• a ‘trading’ allowance to cover income from providing goods, services or other assets, and miscellaneous income and
• a ‘property’ allowance to cover income from property.

For either allowance, where receipts are less than £1,000, income and allowable expenses may be ignored.

Where receipts exceed £1,000, you may elect (for any particular tax year, as desired) to apply the £1,000 allowance against those receipts, but may not then deduct any other expenses.

Any income which attracts rent-a-room relief will not be eligible for either of the allowances.