PIM4436 - Property allowance: contents: computations: partial relief (one property business - UK or overseas)

If an individual elects for Partial Relief and their relevant property income for the tax year is from one property business, then the taxable profit is calculated using the following steps:

Step 1 – Calculate Total Receipts of the relevant property business:

Individuals should calculate the total amount which would be brought into account as a receipt in calculating the profit of their property business for the tax year.

Step 2 – Subtract the Deductible Amount from Receipts:

Individuals then subtract the £1,000 allowance from the total receipts for their property business given in Step 1 above. They cannot also deduct any expenses that would otherwise be allowable.

The total is the taxable property income for the year.

The amount subtracted under this step cannot be used to produce a loss for the property business.

See an example of this computation at PIM4483