|
| |
|
780 | Disabled person’s vehicle maintenance grant |
| |
(1) | No liability to income tax arises in respect of a disabled person’s vehicle |
| |
| |
(2) | For this purpose a “disabled person’s vehicle maintenance grant” means a |
| |
grant to any person owning a vehicle that is made under— |
| 5 |
(a) | paragraph 2 of Schedule 2 to the National Health Service Act 1977 |
| |
| |
(b) | section 46(3) of the National Health Service (Scotland) Act 1978 (c. 29), |
| |
| |
(c) | Article 30 of the Health and Personal Social Services (Northern Ireland) |
| 10 |
Order 1972 (S.I. 1972/1265 (N.I. 14)). |
| |
781 | Payments under New Deal 50plus |
| |
(1) | No liability to income tax arises in respect of a payment that is made— |
| |
(a) | by way of training grant under the “New Deal 50plus” scheme, and |
| |
(b) | to a person as a participant in that scheme. |
| 15 |
(2) | For this purpose the “New Deal 50plus” scheme means — |
| |
(a) | the scheme under section 2(2) of the Employment and Training Act |
| |
1973 (c. 50) known as “New Deal 50plus”, or |
| |
(b) | the corresponding scheme under section 1 of the Employment and |
| |
Training Act (Northern Ireland) 1950 (c. 29 (N.I.)). |
| 20 |
782 | Payments under employment zone programme |
| |
(1) | No liability to income tax arises in respect of a payment that is made to a person |
| |
as a participant in an employment zone programme. |
| |
(2) | For this purpose an “employment zone programme” means an employment |
| |
zone programme established for an area or areas designated under section 60 |
| 25 |
of the Welfare Reform and Pensions Act 1999 (c. 30). |
| |
| |
| |
783 | General disregard of exempt income for income tax purposes |
| |
(1) | Amounts of income which are exempt from income tax as a result of this Part |
| 30 |
(whether because the type of income concerned is exempt from every charge to |
| |
income tax or because it is exempt from every charge that is relevant to those |
| |
particular amounts) are accordingly to be ignored for all other income tax |
| |
| |
(2) | An exception to this is that interest on deposits in ordinary accounts with the |
| 35 |
National Savings Bank which is exempt under this Part from every charge to |
| |
income tax is not to be ignored for the purpose of providing information. |
| |
(3) | This express exception to subsection (1) is without prejudice to the existence of |
| |
any other implied or express exception to that subsection (whether in |
| |
connection with the provision of information or otherwise). |
| 40 |
|
| |
|
| |
|
| |
Income charged under this Act: rent-a-room and foster-care relief |
| |
| |
| |
| 5 |
784 | Overview of Chapter 1 |
| |
(1) | This Chapter provides relief on income from the use of furnished |
| |
accommodation in an individual’s only or main residence. |
| |
| The relief is referred to in this Chapter as “rent-a-room relief”. |
| |
(2) | The form of relief depends on whether the individual’s total rent-a-room |
| 10 |
amount exceeds the individual’s limit (see sections 788 to 790). |
| |
(3) | If it does not, the income is not charged to income tax unless the individual |
| |
elects otherwise (see sections 791 to 794). |
| |
(4) | If it does, the individual may elect for alternative methods of calculating the |
| |
income (see sections 795 to 798). |
| 15 |
785 | Person who qualifies for relief |
| |
(1) | An individual qualifies for rent-a-room relief for a tax year if the individual— |
| |
(a) | has rent-a-room receipts for the tax year (see section 786), and |
| |
(b) | does not derive any taxable income other than rent-a-room receipts |
| |
from a relevant trade, letting or agreement. |
| 20 |
(2) | “Taxable income” means receipts or other income in respect of which the |
| |
individual is liable to income tax for the tax year. |
| |
(3) | A relevant trade, letting or agreement is one from which the individual derives |
| |
rent-a-room receipts for the tax year. |
| |
| 25 |
786 | Meaning of “rent-a-room receipts” |
| |
(1) | For the purposes of this Chapter an individual has rent-a-room receipts for a |
| |
| |
(a) | the receipts are in respect of the use of furnished accommodation in a |
| |
residence in the United Kingdom or in respect of goods or services |
| 30 |
supplied in connection with that use, |
| |
(b) | they accrue to the individual during the income period for those |
| |
receipts (see subsections (3) and (4)), |
| |
(c) | for some or all of that period the residence is the individual’s only or |
| |
| 35 |
(d) | the receipts would otherwise be brought into account in calculating the |
| |
profits of a trade or UK property business or chargeable to income tax |
| |
under Chapter 8 of Part 5 (income not otherwise charged). |
| |
|
| |
|
| |
|
(2) | Meals, cleaning and laundry are examples of goods or services supplied in |
| |
connection with the use of furnished accommodation in a residence. |
| |
(3) | If the receipts would otherwise be brought into account in calculating the |
| |
profits of a trade, the income period is the basis period for the tax year (see |
| |
| 5 |
(4) | Otherwise the income period is the period which— |
| |
(a) | begins at the beginning of the tax year or, if later, the beginning of the |
| |
letting in respect of which the receipts arise, and |
| |
(b) | ends at the end of the tax year or, if earlier, the end of that letting. |
| |
787 | Meaning of “residence” |
| 10 |
(1) | In this Chapter “residence” means— |
| |
(a) | a building, or part of a building, occupied or intended to be occupied as |
| |
| |
(b) | a caravan or houseboat. |
| |
(2) | If a building, or part of a building, designed for permanent use as a single |
| 15 |
residence is temporarily divided into two or more separate residences, it is still |
| |
treated as a single residence. |
| |
788 | Meaning of “total rent-a-room amount” |
| |
(1) | For the purposes of this Chapter an individual’s “total rent-a-room amount” |
| |
for a tax year is the total of— |
| 20 |
(a) | the individual’s rent-a-room receipts for the tax year, and |
| |
(b) | any relevant balancing charges for the tax year (see section 802). |
| |
(2) | In calculating the total rent-a-room amount, no deduction is allowed for |
| |
expenses or any other matter. |
| |
| 25 |
789 | The individual’s limit |
| |
(1) | For the purposes of this Chapter an individual’s limit for a tax year depends on |
| |
whether the individual meets the exclusive receipts condition for the tax year |
| |
| |
(2) | If the individual does, the individual’s limit for the tax year is the basic amount |
| 30 |
| |
(3) | If the individual does not, the individual’s limit for the tax year is half that |
| |
| |
(4) | The basic amount for a tax year is £4250. |
| |
(5) | The Treasury may by order amend the sum for the time being specified in |
| 35 |
| |
|
| |
|
| |
|
790 | Exclusive receipts condition |
| |
(1) | An individual meets the exclusive receipts condition for a tax year if, for each |
| |
rent-a-room residence of the individual, no receipts accrue to any other person |
| |
during any relevant period in respect of— |
| |
(a) | the use of residential accommodation (whether furnished or not) in the |
| 5 |
| |
(b) | goods or services supplied in connection with that use (such as meals, |
| |
| |
| at a time when the residence is the individual’s only or main residence. |
| |
(2) | Each of the following periods is a relevant period— |
| 10 |
(a) | any income period specified in section 786 for any rent-a-room receipts |
| |
of the individual for the tax year, |
| |
(b) | the period of 12 months which begins at the same time as any such |
| |
income period begins, and |
| |
(c) | the period of 12 months which ends at the same time as any such |
| 15 |
| |
(3) | A “rent-a-room residence of the individual” means a residence in respect of |
| |
which the individual derives rent-a-room receipts for the tax year. |
| |
Relief if amount does not exceed limit |
| |
791 | Full rent-a-room relief: introduction |
| 20 |
Sections 792 to 794 (which give the full form of rent-a-room relief) apply if— |
| |
(a) | an individual qualifies for rent-a-room relief for a tax year, |
| |
(b) | the individual’s total rent-a-room amount for the tax year does not |
| |
exceed the individual’s limit for the tax year, and |
| |
(c) | no election by the individual under section 799 has effect to disapply |
| 25 |
the full relief for the tax year. |
| |
792 | Full rent-a-room relief: trading income |
| |
(1) | This section applies if the individual has any rent-a-room receipts for the tax |
| |
year which would otherwise be brought into account in calculating the profits |
| |
| 30 |
(2) | The profits or losses of the trade for the tax year are treated as nil. |
| |
793 | Full rent-a-room relief: property income |
| |
(1) | This section applies if the individual has any rent-a-room receipts for the tax |
| |
year which would otherwise be brought into account in calculating the profits |
| |
of a UK property business. |
| 35 |
(2) | In calculating those profits— |
| |
(a) | those receipts for the tax year, and |
| |
(b) | any expenses associated with them, |
| |
| are not brought into account. |
| |
(3) | No relevant balancing charge or relevant allowance (see section 802) is made |
| 40 |
in calculating those profits for the tax year. |
| |
|
| |
|