Annual value of house property is governed by expected rent, actual rent, vacancy relief, tax deductions, and special nil valuation rules.

Determination of annual value for income from house property is based on the higher of the reasonable expected rent and actual rent received or receivable. Vacancy allowance applies where vacancy reduces rent below expected let value, while local authority taxes actually paid are deducted. Unrealised rent is excluded subject to rules. Special nil valuation applies to specified self-occupied houses and to stock-in-trade property not let for a limited period after completion.

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