When filing an annual self-assessment tax return, property owners and landlords can claim a tax rebate of £1,000 per year, known as property income allowance or property allowance. However, if you receive more than £2,500 in rental income in a particular tax year, you must inform HMRC of your earnings and file a Self Assessment tax return. If gross income from real property is between £1,000 and £2,500, you can notify HMRC and check if you need to file an income re or not. You do not have to declare rental income from residential property if it is less than £1,000. 

Most landlords who are required to declare rental property income are eligible for the property income allowance. If more than one person owns a particular property, each owner can claim the property allowance against their proportionate share of taxable rental income.

The property income allowance is not available to some individuals. For example, you cannot claim the property allowance on the income you earn from renting a room in your home through the Rent a Room Scheme. So it would be best if you claimed to rent a room allowance of £7,500.00. 

You cannot claim the property income allowance if you have any of the following property or business income during the tax year.

• A company that you own or control, 
• A partnership in which you possess equity 
• Your current or former place of employment or the location of employment of your spouse or civil partner.

You are also not eligible for the property income allowance if:

• You deduct (or intend to deduct) finance costs from residential property 
• Deduct Expenses from income by letting out a room in your home