Part 7Income charged under this Act: rent-a-room and F1qualifying care relief

Annotations:
Amendments (Textual)
F1

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)

Chapter 1Rent-a-room relief

Individual's limit

789The individual's limit

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).

790Exclusive receipts condition

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.