Income Tax (Trading and Other Income) Act 2005

Relief if amount does not exceed limit U.K.

791 Full rent-a-room relief: introduction U.K.

Sections 792 to 794 (which give the full form of rent-a-room relief) apply if—

(a) an individual qualifies for rent-a-room relief for a tax year,

(b) the individual's total rent-a-room amount for the tax year does not exceed the individual's limit for the tax year, and

(c) no election by the individual under section 799 has effect to disapply the full relief for the tax year.

792 Full rent-a-room relief: trading income U.K.

(1) This section applies if the individual has any rent-a-room receipts for the tax year which would otherwise be brought into account in calculating the profits of a trade.

(2) The profits or losses of the trade for the tax year are treated as nil.

793 Full rent-a-room relief: property income U.K.

(1) This section applies if the individual has any rent-a-room receipts for the tax year which would otherwise be brought into account in calculating the profits of a UK property business.

(2) In calculating those profits—

(a) those receipts for the tax year, and

(b) any expenses associated with them,

are not brought into account.

(3) No relevant balancing charge or relevant allowance (see section 802) is made in calculating those profits for the tax year.

794 Full rent-a-room relief: income chargeable under Chapter 8 of Part 5 U.K.

(1) This section applies if the individual has any rent-a-room receipts for the tax year which would otherwise be chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).

(2) For each agreement from which those receipts arise, the amount of—

(a) those receipts arising in the tax year from the agreement, less

(b) any expenses associated with them,

is treated as nil.