Part 7

Income charged under this Act: rent-a-room and qualifying care relief
Chapter 1

Rent-a-room relief

Alternative calculation of profits if amount exceeds limit

Alternative calculation of profits: income chargeable under Chapter 8 of Part 5
798
1
This section applies if the individual has any rent-a-room receipts for the tax year which are chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).
2
The amount charged for the tax year arising from all the agreements from which the receipts are derived is—
a
the amount of the receipts for the tax year so arising, less
b
the deductible amount.
3
The deductible amount is—
(L × I)/R
subject to a maximum of I.
4
In subsection (3)—
- L is the individual's limit for the tax year,
- I is the amount of the receipts for the tax year arising from the agreements, and
- R is all the individual's rent-a-room receipts for the tax year.
5
In calculating the amount of any rent-a-room receipts for the purposes of this section, no deduction is allowed for expenses or any other matter.
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)