# Income Tax (Trading and Other Income) Act 2005, Section 796: Alternative 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—
L×TR
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.

---
Source: https://www.legislation.gov.uk/ukpga/2005/5/section/796 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-796
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.