Finance (No. 2) Act 2017 (c. 32)

SCHEDULES

SCHEDULE 2 U.K. Trades and property businesses: calculation of profits

PART 2 U.K. Property businesses: amendments of ITTOIA 2005

33 U.K. 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.”