Part 7Income charged under this Act: rent-a-room and F1qualifying care relief
Chapter 1Rent-a-room relief
Alternative calculation of profits if amount exceeds limit
797Alternative calculation of profits: property income
1
This section applies if the individual has any rent-a-room receipts for the tax year (“Part 3 rent-a-room receipts”) which are to be brought into account in calculating the profits of a UK property business.
2
In calculating those profits for the tax year—
a
the Part 3 rent-a-room receipts for the tax year are brought into account only in calculating the profits of the business for the tax year, and
b
any expenses associated with those receipts are not brought into account.
3
In calculating those profits for the tax year—
a
a deduction is allowed, and
b
no relevant allowance, but any relevant balancing charge, is made.
4
The amount of the deduction—
a
is L if all the individual's rent-a-room receipts for the tax year are Part 3 rent-a-room receipts, and
b
otherwise, is—
but, in either case, subject to a maximum of P.
5
In subsection (4)—
L is the individual's limit for the tax year,
P is the individual's Part 3 rent-a-room receipts for the tax year, and
R is all the individual's rent-a-room receipts for the tax year.
Words 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)