SCHEDULES

SCHEDULE 2Trades and property businesses: calculation of profits

PART 2Property businesses: amendments of ITTOIA 2005

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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.