Trading and property allowances

The allowances for trading and property income remain at £1,000 for 2019/20. Individuals with income of this type which does not exceed their allowance do not have to declare and pay tax on such income. This eliminates the need for the recipients to determine their allowable expenses or to contact HMRC to notify them of the receipt of this income.
A partial relief applies where the individual’s income is above the level of the allowance, so that the individual can elect to pay tax based on their receipts less the allowance, instead of deducting their actual expenditure.
Alternatively, an individual can elect not to be given full relief, so that the tax result will be calculated using income received less expenses incurred. This option is likely to be adopted where there is a loss and the income does not exceed £1,000.