Income Tax (Trading and Other Income) Act 2005 section 792

Full rent-a-room relief: trading income

Section 792 provides for full rent-a-room relief where the rent-a-room income falls within an individual's trading income, by treating the trading profits or losses as nil.

• This section applies where an individual has rent-a-room receipts that would normally be included in calculating trading profits
• When the section applies, the profits or losses of the trade for the tax year are treated as nil
• The effect is that no trading income arises and no trading loss can be claimed in respect of the rent-a-room activity
• This provides full relief by completely disregarding the rent-a-room receipts from the trading income calculation