Section 783AN | Exclusion from relief: expenses deducted against rent-a-room receipts

(1)No relief under this Chapter is given to an individual for a tax year if—

(a)the individual qualifies for rent-a-room relief for the tax year,

(b)the individual has rent-a-room receipts mentioned in subsection (2) for the tax year, and

(c)condition A or B is met.

(2)The rent-a-room receipts mentioned in subsection (1) are—

(a)rent-a-room receipts which would, apart from Chapter 1 of Part 7 (rent-a-room relief), be brought into account in calculating the profits of a trade, or

(b)rent-a-room receipts which would, apart from Chapter 1 of Part 7, be chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).

(3)Condition A is that—

(a)the individual's total rent-a-room amount for the tax year does not exceed the individual's limit for the tax year (see section 783AR), and

(b)an election by the individual under section 799 has effect to disapply full rent-a-room relief for the tax year.

(4)Condition B is that—

(a)the individual's total rent-a-room amount for the tax year exceeds the individual's limit for the tax year, and

(b)no election by the individual under section 800 has effect to apply the alternative method of calculating profits for the tax year.