Valid from 17/07/2013
Rent-a-room reliefU.K.
40U.K.In Chapter 1 of Part 7 of ITTOIA 2005 (rent-a-room relief), in section 786 (meaning of “rent-a-room receipts”), after subsection (4) insert—
“(5)Subsections (6) and (7) apply if—
(a)the receipts would otherwise be brought into account in calculating the profits of a trade, and
(b)an election under section 25A (cash basis for small businesses) has effect in relation to the trade.
(6)Any amounts brought into account under section 96A (capital receipts) as a receipt in calculating the profits of the trade 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.”