Income Tax (Trading and Other Income) Act 2005 section 783AB

Miscellaneous income

Section 783AB defines what counts as "miscellaneous income" for the purposes of the trading and property allowances, and how it interacts with rent-a-room relief.

• Miscellaneous income means all income arising in a tax year that would be chargeable under the residual "income not otherwise charged" rules, before any deduction for expenses.
• The definition uses the gross amount of such income — no deductions for expenses or other matters are allowed when calculating it — to prevent individuals from claiming both expenses and the allowance against the same receipts.
• If an individual qualifies for rent-a-room relief and has rent-a-room receipts that would otherwise fall within the residual income charge, those receipts are excluded from miscellaneous income.
• This exclusion prevents a double benefit by ensuring that the same income cannot attract both rent-a-room relief and the miscellaneous income allowance.