Textual Amendments
F1Words in Pt. 7 heading substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 34 (with Sch. 1 para. 37)
(1)For the purposes of this Chapter an individual has rent-a-room receipts for a tax year if—
(a)the receipts are in respect of the use of furnished accommodation in a residence in the United Kingdom or in respect of goods or services supplied in connection with that use,
(b)they accrue to the individual during the income period for those receipts (see [F2subsection (4)]),
(c)for some or all of that period the residence is the individual's only or main residence, and
(d)the receipts would otherwise be brought into account in calculating the profits of a trade or UK property business or chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).
(2)Meals, cleaning and laundry are examples of goods or services supplied in connection with the use of furnished accommodation in a residence.
F3(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)F4... the income period is the period which—
(a)begins at the beginning of the tax year or, if later, the beginning of the letting in respect of which the receipts arise, and
(b)ends at the end of the tax year or, if earlier, the end of that letting.
[F5(5)Subsections (6) and (7) apply if—
(a)the receipts would otherwise be brought into account in calculating the profits of a trade, and
[F6(b)the profits of the trade are required under section 24A to be calculated on the cash basis.]
(6)Any amounts brought into account under section 96A [F7(capital receipts under, or after leaving, cash basis)] as a receipt in calculating the profits of the trade are to be treated as receipts within paragraph (a) of subsection (1) above.
[F8(6A)Subsections (6B) and (7) apply if—
(a)the receipts would otherwise be brought into account in calculating the profits of a UK property business, and
(b)the profits are calculated on the cash basis (see section 271D).
(6B)Any amounts brought into account under section 307E (capital receipts under, or after leaving, cash basis) as a receipt in calculating the profits of the property business are to be treated as receipts within paragraph (a) of subsection (1) above.]
(7)The reference in subsection (1)(b) to receipts that accrue to an individual during the income period for those receipts is to be read as a reference to receipts that are received by the individual during that period.]
Textual Amendments
F2Words in s. 786(1)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 22(2), 61(1)
F3S. 786(3) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 22(3), 61(1)
F4Word in s. 786(4) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 22(4), 61(1)
F5S. 786(5)-(7) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 40
F6S. 786(5)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 32, 47 (with Sch. 10 paras. 48-50)
F7Words in s. 786(6) substituted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 10
F8S. 786(6A)(6B) inserted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 33