Income Tax (Trading and Other Income) Act 2005

Individual's limit U.K.

789 The individual's limit U.K.

(1) For the purposes of this Chapter an individual's limit for a tax year depends on whether the individual meets the exclusive receipts condition for the tax year (see section 790).

(2) If the individual does, the individual's limit for the tax year is the basic amount for the tax year.

(3) If the individual does not, the individual's limit for the tax year is half that amount.

(4) The basic amount for a tax year is £4250.

(5) The Treasury may by order amend the sum for the time being specified in subsection (4).

790 Exclusive receipts condition U.K.

(1) An individual meets the exclusive receipts condition for a tax year if, for each rent-a-room residence of the individual, no receipts accrue to any other person during any relevant period in respect of—

(a) the use of residential accommodation (whether furnished or not) in the residence, or

(b) goods or services supplied in connection with that use (such as meals, cleaning or laundry),

at a time when the residence is the individual's only or main residence.

(2) Each of the following periods is a relevant period—

(a) any income period specified in section 786 for any rent-a-room receipts of the individual for the tax year,

(b) the period of 12 months which begins at the same time as any such income period begins, and

(c) the period of 12 months which ends at the same time as any such income period ends.

(3) A “rent-a-room residence of the individual” means a residence in respect of which the individual derives rent-a-room receipts for the tax year.