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

Interpretation of this Chapter

Section 783BQ defines certain key terms used throughout Chapter 2 of Part 7, ensuring they carry the same meaning as established in the rent-a-room relief provisions in Chapter 1.

• The terms "rent-a-room relief", "rent-a-room receipts" and "total rent-a-room amount" all take their meanings from the rent-a-room relief rules in Chapter 1 of Part 7.
• "Rent-a-room receipts" are the gross amounts an individual receives from renting furnished accommodation in their home, while the "total rent-a-room amount" is the aggregate of all such receipts for the tax year.
• "The individual's limit" refers to the tax-free threshold (currently £7,500 per year, or £3,750 where another person also receives rent-a-room income from the same property) as set out for the purposes of rent-a-room relief.
• This interpretation section ensures consistency of language between Chapter 1 (which establishes rent-a-room relief) and Chapter 2, so that the same concepts apply uniformly across both chapters.