The Tax Credits (Miscellaneous Amendments) Regulations 2006 No. 766

Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002

15.—(1) Regulation 11 (property income) is amended as follows.

(2) In paragraph (1)—

(a) for “section 15 of the Taxes Act” substitute “Part 3 of ITTOIA”; and

(b) for “that section” wherever it occurs substitute “that Part”.

(3) For paragraph (2) substitute—

“(2) In calculating property income there shall be disregarded any profits—

(a) treated as nil by section 791 to 794 of ITTOIA (full rent-a-room relief); or

(b) excluded from profits by section 795 to 798 of ITTOIA (alternative calculation of profits if amount exceeds limit).”.

(4) In paragraph (3) for “Where a Schedule A business (as defined within Schedule A set out in section 15 of the Taxes Act)” substitute “Where a property business (as defined in Part 3 of ITTOIA)”.