Income Tax (Trading and Other Income) Act 2005

[F1 Exclusions from relief U.K.

Textual Amendments

F1 Pt. 6A inserted (16.11.2017) (with effect in accordance with Sch. 3 para. 13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 3 para. 1

783AN Exclusion from relief: expenses deducted against rent-a-room receipts U.K.

(1) No relief under this Chapter is given to an individual for a tax year if—

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

(b) the individual has rent-a-room receipts mentioned in subsection (2) for the tax year, and

(c) condition A or B is met.

(2) The rent-a-room receipts mentioned in subsection (1) are—

(a) rent-a-room receipts which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of a trade, or

(b) rent-a-room receipts which would, apart from Chapter 1 of Part 7, be chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).

(3) Condition A is that—

(a) the individual's total rent-a-room amount for the tax year does not exceed the individual's limit for the tax year (see section 783AR), and

(b) an election by the individual under section 799 has effect to disapply full rent-a-room relief for the tax year.

(4) Condition B is that—

(a) the individual's total rent-a-room amount for the tax year exceeds the individual's limit for the tax year, and

(b) no election by the individual under section 800 has effect to apply the alternative method of calculating profits for the tax year.

783AO Exclusion from relief: payments by employer U.K.

No relief under this Chapter is given to an individual for a tax year if—

(a) the individual has relevant income for the tax year, and

(b) the income includes a payment made by, or on behalf of, a person at a time when the individual is—

(i) an employee of the person, or

(ii) the spouse or civil partner of an employee of the person.

783AP Exclusion from relief: payments by firm U.K.

No relief under this Chapter is given to an individual for a tax year if—

(a) the individual has relevant income for the tax year, and

(b) the income includes a payment made by, or on behalf of, a firm at a time when the individual is—

(i) a partner in the firm, or

(ii) connected with a partner in the firm.

783AQ Exclusion from relief: payments by close company U.K.

(1) No relief under this Chapter is given to an individual for a tax year if—

(a) the individual has relevant income for the tax year, and

(b) the income includes a payment made by, or on behalf of, a close company at a time when the individual is—

(i) a participator in the close company, or

(ii) an associate of a participator in the close company.

(2) In this section “associate” and “participator” have the same meanings as in Part 10 of CTA 2010 (see sections 448 and 454).]