SCHEDULES
SCHEDULE 2Trades and property businesses: calculation of profits
PART 2Property businesses: amendments of ITTOIA 2005
33
In section 786 (meaning of “rent-a-room receipts”), after subsection (6) insert—
6A
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.