Form

UK property notes (2022)

Updated 6 April 2024

Use these notes to help you fill in the UK property pages of your tax return for the tax year 6 April 2021 to 5 April 2022.

Fill in the UK property pages if you receive income of more than £1,000 (including any income from foreign property reported in the Foreign pages) from any of the following sources:

• rental income and other receipts from UK land or property

• income from letting furnished rooms in your own home

• income from furnished holiday lettings in the UK or European Economic Area (EEA)

• premiums from leasing UK land

• inducements to take an interest in letting a property (a reverse premium)

Check if you still need to fill in a tax return

You can use a tool to check if you need to fill in a tax return for this year.

If you do not need to fill in a return, you must tell us by 31 January 2023 to avoid paying penalties.

Coronavirus support scheme payments

You must include any taxable coronavirus support scheme payments you received, subject to further guidance in these notes. These include:

• Coronavirus Job Retention Scheme (CJRS)

• any other applicable HMRC coronavirus support scheme

• payments that you were entitled to receive from local authorities or devolved administrations

There is more information about coronavirus grants and supports on GOV.UK.

Incorrectly claimed coronavirus support scheme payments

Enter the amount of any incorrectly claimed CJRS or other applicable HMRC coronavirus support scheme payments on page TR 5 of your Self Assessment return form (SA100). You do not need to do this if you have:

• voluntarily paid it back to HMRC

• received an assessment issued by an officer of HMRC in respect of the incorrectly claimed payment

Property income allowance

All income from property, including any foreign property, up to £1,000, is exempt from tax and does not need to be reported on a tax return.

Read page TRG 3 of the tax return notes to check that you qualify for the property income allowance.

If you do not want to claim the allowance because your allowable expenses are higher than your turnover and you want to be able to claim relief for the loss against future property income you should calculate your property profits by deducting allowable expenses and allowances. If you do this do not complete the property income allowance boxes (box 5.1 or box 20.1).

If you’re a non-resident landlord and you want to claim back tax paid under the non-resident landlord scheme, fill in box 1, box 2 (if applicable) and box 21.

If your total income from property, including foreign property income reported on the Foreign page, is over £1,000, complete the UK property pages by either:

• claiming the allowance in box 5.1 for furnished holiday lettings or box 20.1 for UK property income (if you claim the property income allowance, you cannot deduct any allowable expenses or claim any other allowances)

• calculating your property profits by deducting allowable expenses and allowances (if you do this, you cannot claim the property income allowance)

Whether you have one or more property business, the total amount of property income allowance claimed cannot exceed £1,000.

You cannot claim the allowance if any of your property income is from a connected party.

If you receive income from letting furnished accommodation in your home that amounts to a trade. For example, if you run a guest house or offer bed and breakfast, you need to fill in the Self-employment pages.

If you claim the Rent a Room relief, you cannot also claim the property income allowance on Rent a Room income.

You can find more information on the property income allowance; the non-resident landlord scheme; and Rent a Room relief on GOV.UK.

Income

Enter any income from Real Estate Investment Trusts (REITs) and Property Authorised Investment Funds (PAIFs) dividends and distributions in box 17 on page TR 3 of your main tax return.

You need to fill in the Foreign pages if you receive income from land and property overseas, but income from a furnished holiday letting in the EEA must go in the UK property pages. However, if your income from a furnished holiday letting is taxable on the remittance basis, fill in the Foreign pages. You must be a UK resident but not domiciled in the UK and have foreign income and gains to use the remittance basis form of taxation.

If you want to claim Foreign Tax Credit Relief on any foreign tax paid on your EEA furnished holiday lettings, fill in the Foreign tax paid on employment, self-employment and other income section on page F 6 of the Foreign pages.

If you receive property income as part of your income from a partnership, you need to fill in the Partnership (full) pages.

Accounts

If your accounting period for your property income does not end on 5 April 2022, apportion the figures in your accounts to cover the tax year 6 April 2021 to 5 April 2022.

If you’re in the Managing Serious Defaulters (MSD) programme, fill in all the relevant boxes. If you’re the subject of additional reporting requirements, you must also send a detailed profit and loss account, balance sheet and computations with your tax return and either:

• tell us about any figures that you do not have records for, from the time of the transactions

• confirm that you have records for all the figures in your accounts

Your name and Unique Taxpayer Reference

Fill in your full name and Unique Taxpayer Reference (UTR) in the boxes at the top of the form.

Example of completed name and UTR boxes

Your name	Your UTR
Paul Smith	13579 24680

UK property details

Box 3: If you have any income from property let jointly

If you own and let property jointly enter X in the box. If so, you only need to enter your share of the income and expenses in the UK property pages.

If you live with your spouse. we tax your shares equally. If you want your income and expenses apportioned differently, fill in form 17: Declaration of beneficial interests in joint property and income.

If you receive notice of your share of the income (or loss) after expenses, enter the income in boxes 5 or 20, or the loss in boxes 9 or 29. Tell us the name and address of the person who prepares your property records in the Any other information box on page TR 7 of your tax return.

Box 4: If you’re claiming Rent a Room relief and your rents are £7,500 or less

If you let furnished rooms in your home and your total income was less than the Rent a Room exemption, £7,500 (£3,750 if let jointly) enter X in box 4. You do not need to complete the rest of the UK property pages if this is your only letting income.

If your total income was more than the exemption, do not complete box 4, and either:

• pay tax on the excess — without taking off any expenses — enter your total income in box 20 and the exempt amount £7,500 (or £3,750) in box 37 (you cannot claim the property income allowance on Rent a Room income)

• work out your profit from letting in the usual way — the amount in box 20 minus any allowable expenses in boxes 24 to 29 (do not enter anything in box 37)

You can find more information in the Rent a Room Scheme (Self Assessment helpsheet HS223).

Furnished holiday lettings in the UK or EEA

There are special rules for furnished holiday lettings. You may be able to claim certain Capital Gains Tax reliefs, and capital allowances for items such as furniture and fixtures.

You need to work out the profit or loss from your furnished holiday lettings separately to take advantage of these rules.

Your property will qualify as a furnished holiday letting if it’s in the UK or EEA and will be, for the 2021 to 2022 tax year, both:

• available for holiday letting for 210 days or more

• let as holiday accommodation for 105 days or more

You can find more information in the HS253 Furnished holiday lettings (2020) guidance.

EEA businesses

If you pay tax on your income on the remittance basis, fill in the Foreign pages.

You can find more information in the Remittance basis 2022 (HS264) guidance.

If you have a furnished holiday lettings business in the EEA, fill in boxes 1 to 3 (ignore the heading UK property details), boxes 5 to 19 and enter X in box 18.

You’ll need to use separate UK property pages for your UK and EEA furnished holiday lettings business if you have both. You do not need separate pages for each individual property.

Box 5: Income

Enter the total amount of income from all your furnished holiday lettings (including income from services you provide to tenants) in box 5.

Coronavirus support scheme payments are taxable and include payments from the CJRS, any other applicable HMRC coronavirus support scheme and payments you were entitled to receive from local authorities or devolved administrators.

Enter any coronavirus support scheme payments in box 5.

If you’ve had an assessment by an HMRC officer about an incorrectly claimed coronavirus support scheme payment enter the amount you retained in box 5.

Do not include in box 5 the amount of any sum that has been assessed which results in the repayment of coronavirus support scheme payments that you were not entitled to.

Do not include CJRS payments received as an employee whilst furloughed.

Enter the amount of any incorrectly claimed amount on page TR 5 of the main tax return SA100 if:

• you received a CJRS or any other applicable HMRC coronavirus support scheme payment that you were not entitled to and you have not voluntarily paid it back to HMRC

• you have not received an assessment issued by an officer of HMRC in respect of the incorrectly claimed payment

If you’re a non-resident landlord, enter your gross amount (without tax taken off) of furnished holiday lettings income in box 5 and any tax taken off in box 21.

If you use cash basis, your income is the total amounts you received during the year (see box 5.2).

Box 5.1: Property income allowance

Before completing this box, read the Property income allowance section earlier in this guide.

If your property income is over £1,000 and you’re claiming property income allowance, the total amount of the allowance claimed from all property businesses (this includes overseas property businesses) cannot exceed £1,000.

Box 5.2: Traditional accounting or cash basis

Enter X in box 5.2 if you used traditional accounting instead of cash basis.

Cash basis is a simpler way of working out your property business profits or losses. You add up all your property income received (your turnover) and take off any allowable expenses paid in the year. Do not include money you owe or owed to you after 5 April 2022.

You can only use cash basis if your total income from UK property (including furnished holiday lettings in the UK) or income from foreign property (including furnished holiday lettings in the EEA) is up to £150,000.

If you have income from a furnished holiday letting in the UK and UK property income, you must use the same basis (traditional accounting or cash basis) for both incomes. Box 5.2 and box 20.2 must both be either present or absent.

If you have income from a furnished holiday letting in the EEA (see box 18) and income from a foreign property (included in the Foreign pages), you must use the same basis (traditional accounting or cash basis) for both incomes. Box 5.2 and box 14.2 (on page F 4 of the Foreign pages) must both be either completed or blank.

There is more information on cash basis on GOV.UK.

Transitional adjustments

If you change basis this year, from cash basis to traditional accounting or from traditional accounting to cash basis, you may need to make a transitional adjustment.

All transitional receipts must be included in box 5 and all transitional expenses must be included in box 9.

Boxes 6 to 12

If you’re claiming for certain furnished holiday lettings business costs, fill in boxes 6 to 12.

If your total property income (including furnished holiday lettings income) before expenses is below £85,000, you can just add up your furnished holiday lettings expenses and enter the total in box 9.

If you claim the property income allowance, you cannot deduct any allowable expenses or claim any other allowances on this income. Do not fill in boxes 6 to 10 or box 11.1 to box 12.

Box 6: Rent paid, repairs, insurance and costs of services provided

You can claim furnished holiday lettings expenses, such as:

• rents, rates, insurance and ground rent

• property repairs and maintenance

• costs of services you provided, including wages (include wages funded by the CJRS paid out to employees)

• insurance against loss of rents — however, if you claim under your own insurance policy, enter any money you received in box 5

You can claim capital allowances on some of your capital costs (see box 11.1 to box 12).

Box 7: Loan interest and other financial costs

You can claim the costs of getting a loan or alternative finance to buy a property that you let, and any interest on such a loan or alternative finance payments.

You cannot claim the cost of any capital repayments from your mortgage. You must only include the proportion of the costs that are for the purpose of your furnished holiday lettings properties.

Box 8: Legal, management and other professional fees

You can claim:

• management fees paid to an agent for rent collection, advertising and administration

• legal and professional fees paid for renewing a lease (if the lease is for less than 50 years)

• professional fees paid to evict an unsatisfactory tenant in order to re-let the property

• any costs for appealing against a compulsory purchase order

You cannot claim:

• any costs for the first letting or subletting of a property for more than a year

• the costs for agreeing and paying a premium on renewal of a lease

• any fees paid for planning permission or registration of title on property purchase

Box 9: Other allowable property expenses

Other allowable expenses include:

• stationery, phone, business travel and miscellaneous costs

• part of a premium paid to a landlord for the lease (if you’re subletting)

• any foreign tax taken off your EEA furnished holiday lettings income (unless you’re claiming Foreign Tax Credit Relief for it on the Foreign pages) — if you’re a non-resident furnished holiday lettings landlord, enter the UK tax taken off in box 21 instead

If you’re not sure how to work out the amount to enter in box 9, ask us or your tax adviser.

There is more information on flat rate expenses for landlords on GOV.UK.

Box 10: Private use adjustment

If you enter an amount in box 6 that was not solely for the business, enter the private (non-business) amount in box 10. For example, if you include the full annual cost of insuring the property in box 6, but only let it for 8 months because you used it for 4 months, enter the 4 months non-business cost in box 10.

Box 11: Balancing charges

You may have to include a balancing charge if you sold, gave away or stopped using an item in your business that you claimed capital allowances for. Enter this amount in box 11.

Any balancing charges are regarded as income if you’re claiming property income allowance.

Box 11.1: Electric charge-point allowance

You can claim the 100% first year allowance for the cost of buying and installing new and unused electric charge-points for electrical vehicles. Enter the expenditure in box 11.1.

Box 11.2: Zero-emission car allowance

Claim the 100% first year allowance (the full cost) of any new and unused zero-emission or electric cars in this box.

If you use a car outside of your business, you must reduce the claim in proportion to the non-business use.

Box 12: Other capital allowances

If you’re claiming capital allowances for any other equipment or vehicles for your furnished holiday lettings (not other furnished residential lettings), enter the amount in box 12.

You cannot claim capital allowances if you’re claiming the property income allowance (in box 5.1) or using cash basis. The only exception for those using cash basis (and not claiming the trading income allowance) is cars.

There is more information on capital allowances and balancing charges on GOV.UK (or you can contact your tax adviser).

Boxes 13 and 16: How to calculate your furnished holiday lettings adjusted profit or loss

Use this working sheet to help you work out your adjusted profit or loss. If you made a profit, put the amount in box 13. If you made a loss, put the amount in box 16.

Box 14: Loss brought forward used against this year’s profits

Enter any loss you made in 2020 to 2021 or earlier tax years in box 14. This must not be more than the amount in box 13.

If you made a loss in another property business (not a furnished holiday letting), you can include (up to the amount in box 13) that loss in box 14.

Box 15: Taxable profit for the year

If you had no losses in earlier years, enter the same figure you used in box 13, in box 15.

Box 17: Total loss to carry forward

You can carry your loss forward to set against any future profits. If you had any furnished holiday lettings losses from earlier years that you have not already used up, enter them in box 17.

Box 18: If this business is in the EEA, enter X in the box

If you have several properties in different EEA states, you only need to fill in one UK property page for your EEA businesses.

Box 19: If you want to make a period of grace election

You can make an election for a period of grace if a property qualified as a furnished holiday letting in the 2020 to 2021 tax year but did not qualify in the 2021 to 2022 tax year.

There is more information on furnished holiday lettings on GOV.UK.

Property income

Box 20: Total rents and other income from property

Enter your total property rental income (not income from a furnished holiday letting included on page UKP 1) in box 20.

Include income from:

• a tenancy

• leasing or licensing agreements over your land or property

• any land

• furnished, unfurnished, commercial and domestic accommodation (including amounts you receive for the use of furniture), except where you run a guest house or bed and breakfast

• any 2021 to 2022 rental income paid after 5 April 2022 if you’re using traditional accounting — do not include rents paid in advance for the 2022 to 2023 tax year

• coronavirus support scheme payments

Coronavirus support scheme payments are taxable and include payments from the CJRS, any other applicable HMRC coronavirus support scheme and payments you were entitled to receive from local authorities or devolved administrations.

Include the amount you received from coronavirus support scheme payments in box 20.

If you’ve had an assessment by an HMRC officer about an incorrectly claimed coronavirus support scheme payment enter the amount you retained in box 20. Do not include any amount that has been assessed and which results in the repayment of coronavirus support scheme payments that you were not entitled to.

Do not include CJRS payments you received as an employee while you were furloughed.

Enter the incorrectly claimed amount on page TR 5 of the main tax return SA100 if:

• you received a CJRS or any other applicable HMRC coronavirus support scheme payment that you were not entitled to and you have not voluntarily paid it back to HMRC

• you have not received an assessment issued by an officer of HMRC in respect of the incorrectly claimed payment

Also include other income, such as:

• rent charges and ground rents

• income from letting others tip waste on your land

• income for the use of a caravan or houseboat at a fixed location

• income from the grant of sporting rights

• receipts from a film crew who pay to film on your land or in your house

• way leaves if the land to which the way leaves relates is used in your property rental business

• local authority grants towards the cost of repairs

If you’re a non-resident landlord, enter the total of your rental income (without tax taken off) in box 20, and the total tax taken off in box 21.

Box 20.1: Property income allowance

Before completing this box, read the Property income allowance section earlier in this guide.

Box 20.2: Traditional accounting or cash basis

Enter X in box 20.2 if you used traditional accounting instead of cash basis.

Cash basis is a simpler way of working out your property business profits or losses. You add up all your property income received (your turnover) and take off any allowable expenses paid in the year. Do not include money you owe or owed to you after 5 April 2022.

You can only use cash basis if your total income from UK property (including furnished holiday lettings in the UK) is up to £150,000.

If you have income from a furnished holiday letting in the UK and UK property income, you must use the same basis (traditional furnished holiday letting accounting or cash basis) for both incomes. Box 5.2 and box 20.2 must both be either present or blank.

You can find more information about cash basis on GOV.UK.

Transitional adjustments

If you change basis this year, from cash basis to traditional accounting or from traditional accounting to cash basis, you may need to make a transitional adjustment.

All transitional receipts must be included in box 20 and all transitional expenses must be included in box 29.

Box 21: Tax taken off any income in box 20

Only fill in this box if you’re a non-resident landlord (read the Property income allowance section earlier in this guide).

Box 22: Premiums for the grant of a lease

If you’ve received premiums for the grant of a lease and other lump sums to possess a property, use the guidance here to work out the amount to enter in box 22.

If the lease is up to 50 years, the premium is treated as part capital and part income. Only include the income part in box 22.

Do not include any lease over 50 years in box 22. Any premiums for the grant of a lease are regarded as income if you’re claiming property income allowance.

How to work out the premiums for the grant of a lease

Use this working sheet to help you calculate the premiums for the grant of a lease.

Box 23: Reverse premiums and inducements

Enter any payment or benefit you got as an inducement to take an interest in a property (a reverse premium), in box 23.

Any reverse premiums and inducements are regarded as income if you’re claiming property income allowance.

Property expenses

You can claim for the running costs of your rental business.

If your total property income before expenses (including income from furnished holiday lettings) is below £85,000, you can just add up your expenses and enter the total (minus any furnished holiday lettings expenses) in box 29.

Do not include the cost of buying, selling, improving or altering any land, property, equipment, furnishings or furniture. These are capital costs.

If you claim the property income allowance, you cannot deduct any allowable expenses or claim any other allowances on this income. Do not fill in boxes 24 to 29.

Box 24: Rent, rates, insurance, ground rents etc

You can claim:

• the rent for a lease of a property you let

• business rates, water rates and Council Tax

• property and contents insurance

• insurance paid against loss of rents — however, if you claim under your own insurance policy, enter any money you received in box 20

• ground rents

Box 25: Property repairs and maintenance

Enter any expenses you paid to maintain your property, for example:

• exterior and interior painting, damp treatment, stone cleaning or roof repairs

• furniture repairs

• repairs to any kind of machinery supplied with the property

Box 26: Non-residential property finance costs

Non-residential property

You can claim the costs of getting a loan, or alternative finance to buy a non-residential property that you let, and the full amount of any interest on such a loan or alternative finance payments.

Residential property finance costs

You cannot claim the costs of getting a loan, or alternative finance to buy a residential property that you let or any interest on this a loan or alternative finance payments. These costs can be used to calculate a reduction in Income Tax by putting the amount of residential property finance costs in box 44.

There is more information on residential property finance costs on GOV.UK.

Box 27: Legal, management and other professional fees

You can claim:

• management fees paid to an agent for rent collection, advertising and administration

• legal and professional fees for renewing a lease (if the lease is for less than 50 years)

• professional fees paid to evict an unsatisfactory tenant in order to re-let the property

• the costs of appealing against a compulsory purchase order

You cannot claim:

• any costs for the first letting or subletting of a property for more than a year

• the costs for agreeing and paying a premium on renewal of a lease

• any fee paid for planning permission or registration of title on property purchase

Box 28: Costs of services provided, including wages

This includes any services that you provide to your tenants such as, communal hot water, gardening or cleaning. Include wages funded by the CJRS paid out to employees.

If you receive any income for the services that you provide, include this as property income.

Box 29: Other allowable property expenses

Other allowable expenses include:

• stationery, phone, business travel and miscellaneous costs

• part of a premium paid to a landlord for the lease (if you’re subletting)

• irrecoverable debts written off (but only if you are not using cash basis) (there is more information in the Property Income Manual).

If your total property income before expenses (including income from furnished holiday lettings) is below £85,000, you can just add up your expenses and enter the total (minus any furnished holiday lettings expenses) in box 29.

There is more information on flat rate expenses for landlords in the Property Income Manual).

If you’re not sure how to work out the amount to enter in box 29, ask your tax adviser.

Calculating your taxable profit or loss

If you claim the property income allowance, you cannot deduct any allowable expenses or claim any other allowances on this income. Do not fill in box 30 or boxes 32 to 36.

Box 30: Private use adjustment

If you enter amounts in boxes 24 to 29 that were not solely for the property business, enter the private (non-business) amount in box 30.

For example, if you’ve included the full annual cost of insuring the property in box 24, but only let the property for 8 months in the year because you used it for the other 4 months, enter the 4 months non-business cost in box 30.

Box 31: Balancing charges

If you sold, gave away or stopped using an item in your business that you claimed capital allowances for, you may have to include a balancing charge. Enter this amount in box 31.

Any balancing charges are regarded as income if you’re claiming property income allowance.

Box 32: Annual Investment Allowance

You can claim Annual Investment Allowance (AIA) if you bought equipment (but not cars) during the year. You cannot claim AIA for expenditure on equipment and other items for use in a dwelling house.

For claims over £800,000, enter £800,000 in box 32 and any amount in excess of that in box 35 (All other capital allowances) up to a combined total of £1 million.

In the Any other information box, box 19 on page TR 7 of your tax return, tell us the amount of AIA included in box 35.

You can find more information about AIA on GOV.UK.

Box 33: The Structures and Buildings Allowance

If you’re eligible to claim the Structures and Buildings Allowance (SBA), enter the amount of the claim in box 33 (unless you’re claiming the enhanced SBA for structures and buildings in Freeport tax sites, in which case, see box 33.2). If you are claiming for the first time for a particular structure or building, use the Any other information box, box 19 on page TR 7 of your tax return, to record the:

• date the building first came into qualifying use or if later, the date the qualifying expenditure was incurred

• total amount of qualifying expenditure incurred

There is more information about claiming capital allowances for structures and buildings on GOV.UK.

Box 33.1: Electric charge-point allowance

You can claim 100% first year capital allowances for the cost of buying and installing new and unused electric charge-points for electric vehicles. Enter the cost in box 33.1.

Box: 33.2 Freeport Structures and Buildings allowance

If you’re eligible to claim the enhanced SBA for Freeport tax sites, enter the amount of the claim in box 33.2.

If you’re claiming for the first time in respect of an amount of qualifying expenditure, use the Any other information box on page TR 7 of your tax return, to record the:

• freeport to which the claim relates

• address or location of the structure or building

• date the building first came into qualifying use, or if later, the date the qualifying expenditure was incurred

• total amount of qualifying expenditure incurred

• date the first contract for construction was entered into

You can check if and how much you can claim on GOV.UK.

Box 34: Zero-emission goods vehicle allowance

You can claim the 100% first year allowance (the full cost) of any new and unused zero-emission goods vehicles. Enter the amount in box.

If you use a vehicle outside of your business, for 20% of the time for example, you must reduce the amount of the claim by 20%.

Box 34.1: Zero-emission car allowance

You can claim the 100% first year allowance (the full cost) of any new and unused zero-emission or electric cars.

If you use a car outside of your business, you must reduce the claim in proportion to the non-business use.

Box 35: All other capital allowances

The type of capital allowance and amount that you can claim will depend on the cost, type of asset and other circumstances. For example, you can only claim capital allowances for furniture and fixtures or other equipment for use in a dwelling house if it qualifies as a furnished holiday letting. Enter your total capital allowances in box 35.

You may be able to claim some of these allowances:

• 18% writing down allowance (WDA) on the balance of your purchases after deducting any AIA if your total costs were more than the maximum amount

• 6% WDA for special rate equipment such as electrical systems and cars with higher CO2 emissions

There is more information on capital allowances and CO2 emissions on GOV.UK.

Business Premises Renovation Allowance (BPRA) is no longer available for expenditure incurred after 5 April 2017. Enter any BPRA claims for expenditure incurred before 6 April 2017 in box 35 and any BPRA balancing charge in box 31.

There is more information about BPRA on GOV.UK.

Fixtures

There are rules for claiming capital allowances if you buy, sell or lease a property that has fixtures (for example, kitchen fittings, electrical or heating systems).

The buyer would usually be blocked from claiming capital allowances unless the seller and buyer formally agree the part of the purchase price to be attributed to those fixtures.

You should have a mutual agreement which is usually made by means of a joint election (called a section 198 election) which you must tell HMRC about within 2 years of the date of transfer.

If you buy or sell a property, the new owner will not be able to claim allowances for fixtures if the previous owner did not pool their qualifying expenditure on the fixtures.

Pooling includes making a claim for first year allowance or AIA for the expenditure. The last owner does not have to claim writing down allowances. As a rule, the previous owner is the last person who was entitled to claim capital allowances on fixtures.

There is more information on capital allowances and CO2 emissions on GOV.UK.

Box 36: Costs of replacing domestic items (for residential non-furnished holiday lettings only)

You can claim the cost of replacing domestic items in the residential accommodation where:

• the cost is incurred on purchasing a replacement domestic item — you cannot claim the initial cost for an item provided for use in the accommodation for the first time

• the new item is provided solely for the use of the tenants in the accommodation and the old item is no longer available for use

If the new item is an improvement on the old item, you can only claim up to the amount needed to replace the original item.

Include items such as:

• moveable furniture (for example, beds, freestanding wardrobes)

• furnishings (for example, curtains, linens, carpets, floor coverings)

• household appliances (for example, televisions, fridges, freezers)

• kitchenware (for example, crockery, cutlery)

Box 37: Rent a Room exempt amount

If you’ve entered any Rent a Room income in box 20, enter the exempt amount you’re claiming (either £7,500 or £3,750, if let jointly) in box 37. If you claim the Rent a Room relief, you cannot also deduct any expenses or capital allowances or claim the property income allowance on Rent a Room income.

There is more information on Rent a Room relief on GOV.UK.

Boxes 38 and 41: Working sheet for property income profit and loss

Use this working sheet to help you work out your adjusted profit or a loss.

Box 39: Loss brought forward used against this year’s profits

Enter any unused losses from earlier years (up to the amount in box 38) in box 39 to use against your property profits. Use the figure in box 43 of your UK property pages for the 2020 to 2021 tax year. Include any unused losses to carry forward in box 43.

Box 42: Loss set off against 2021 to 2022 total income

You can only set off a loss for this tax year against your total income if the loss is from:

• agricultural expenses on your rental business

• capital allowances

Any loss set off is limited to the lowest amount of:

• boxes 32 to 35 minus box 31

• the loss in box 41 (do not include amounts used against furnished holiday lettings profits)

• your other income amounts

The amount of tax relief you can claim against your total income each year is also limited to the greater of £50,000 or 25% of your adjusted total income.

Enter the total amount you want to set off (including any loss brought forward from last year that relates to agricultural expenses or capital allowances), in box 42.

There is more information on agricultural land loss relief and the limit on income tax reliefs on GOV.UK.

Box 43: Loss to carry forward to following year, including unused losses brought forward

In box 43 enter any loss from box 41 that you have not already used in box 39 or 14. Include any loss from box 43 of your 2020 to 2021 tax return that you have not used in box 39 or 14.

Box 44: Residential property finance costs

You can use the costs of getting a loan, or alternative finance to buy a residential property and any interest on such a loan or alternative finance payments to calculate a reduction in your Income Tax.

Enter the amount of any costs, interest and alternative finance payments in box 44.

Box 45: Unused residential property finance costs brought forward

Enter any unused residential property finance costs from this property business from earlier years in box 45.

You can carry any balance of residential finance costs which are still unrelieved forward to future years of the same property business.

There is more information on residential property finance costs on GOV.UK. You can also get copies of any tax return forms or helpsheets.

The Self Assessment Helpline can help you with your tax return.

Self Assessment Helpline: 0300 200 3310.