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New tax allowance for property and trading income

Two new income tax allowances of £1,000 each, are to be introduced for trading and property income. These new allowances will take effect for 2017/18 onwards. Individuals with trading income or property income below the level of the allowance will no longer need to declare or pay tax on that income. The trading income allowance will also apply to certain miscellaneous income from providing assets or services.

The trading allowance will also apply for Class 4 National Insurance contribution purposes.

The allowances will not apply in addition to relief given under the rent-a-room relief legislation.

Following the publication of the draft legislation on this measure, it has been confirmed in the 2017 Spring Budget that revisions will be made to prevent the allowances from applying to income of a participator in a connected close company or to any income of a partner from their partnership. Minor revisions will also be made to improve clarity and correct errors.

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Added By: Sue Taylor on 13th Mar 2017 - 16:02
Last Updated: 13th Mar 2017 - 16:05

Number of Views: 648
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