Income Tax (Trading and Other Income) Act 2005 section 23

Rent-a-room and qualifying care relief

Section 23 explains how the normal rules for calculating trading profits are modified when an individual is eligible for rent-a-room relief or qualifying care relief.

• Trading profit calculations for individuals are subject to rent-a-room relief rules, which provide tax relief on income from letting furnished accommodation in the individual's only or main home.
• Trading, professional or vocational profit calculations for individuals are also subject to qualifying care relief rules, which provide tax relief on income from providing qualifying care.
• Where these reliefs apply, the income may either be fully exempt from tax or calculated using a special method, depending on the total amount of income involved.
• When applicable, the rent-a-room and qualifying care relief rules take priority over the usual trading profit calculation rules.