Income Tax (Trading and Other Income) Act 2005 section 799

Election not to apply full relief

Section 799 allows an individual to elect out of the automatic full rent-a-room relief, so that they can instead use the alternative basis or claim normal expenses against their rental income.

• An individual can choose for full rent-a-room relief (under sections 792 to 794) not to apply for a specified tax year
• The election must state the tax year it relates to, and it only has effect for that year unless the individual withdraws it by notice
• The election or any withdrawal notice must be submitted to HMRC by the first anniversary of the normal self-assessment filing date for the relevant tax year
• HMRC may allow a later deadline for submitting the election or withdrawal in individual cases