796Alternative calculation of profits: trading incomeU.K.
(1)This section applies if the individual has any rent-a-room receipts for the tax year which are the receipts of a trade.
(2)The profits of the trade for the tax year are—
(a)the sum of the amount of the rent-a-room receipts for the tax year arising from the trade and the amount of any relevant balancing charge, less
(b)the deductible amount.
(3)The deductible amount—
(a)is L if all the individual's rent-a-room receipts for the tax year arise from the trade, and
(b)otherwise, is—
but, in either case, subject to a maximum of T.
(4)In subsection (3)—
L is the individual's limit for the tax year,
T is the individual's rent-a-room receipts for the tax year arising from the trade, 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.