Part 7Income charged under this Act: rent-a-room and F2qualifying care relief
Chapter 1Rent-a-room relief
Basic definitions
786Meaning of “rent-a-room receipts”
1
For the purposes of this Chapter an individual has rent-a-room receipts for a tax year if—
a
the receipts are in respect of the use of furnished accommodation in a residence in the United Kingdom or in respect of goods or services supplied in connection with that use,
b
they accrue to the individual during the income period for those receipts (see subsections (3) and (4)),
c
for some or all of that period the residence is the individual's only or main residence, and
d
the receipts would otherwise be brought into account in calculating the profits of a trade or UK property business or chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).
2
Meals, cleaning and laundry are examples of goods or services supplied in connection with the use of furnished accommodation in a residence.
3
If the receipts would otherwise be brought into account in calculating the profits of a trade, the income period is the basis period for the tax year (see Chapter 15 of Part 2).
4
Otherwise the income period is the period which—
a
begins at the beginning of the tax year or, if later, the beginning of the letting in respect of which the receipts arise, and
b
ends at the end of the tax year or, if earlier, the end of that letting.
F15
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 F3(capital receipts under, or after leaving, cash basis) as a receipt in calculating the profits of the trade are to be treated as receipts within paragraph (a) of subsection (1) above.
F46A
Subsections (6B) and (7) apply if—
a
the receipts would otherwise be brought into account in calculating the profits of a UK property business, and
b
the profits are calculated on the cash basis (see section 271D).
6B
Any amounts brought into account under section 307E (capital receipts under, or after leaving, cash basis) as a receipt in calculating the profits of the property business 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.
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)