Part 7Income charged under this Act: rent-a-room and F1qualifying care relief
Chapter 1Rent-a-room relief
Alternative calculation of profits if amount exceeds limit
796Alternative calculation of profits: trading income
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.
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)