Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 7 U.K. Income charged under this Act: rent-a-room and [F1 qualifying care] relief

Textual Amendments

F1 Words in Pt. 7 heading substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 34 (with Sch. 1 para. 37)

Chapter 2 U.K. [F2 qualifying care relief]

Textual Amendments

F2 Pt. 7 Ch. 2 heading substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 29 (with Sch. 1 para. 37)

Introduction U.K.

803 Overview of Chapter 2 U.K.

[F3 (1) This Chapter provides relief on income from the provision by an individual of qualifying care.

The relief is referred to in this Chapter as “qualifying care relief”.]

(2) The form of relief depends on whether the individual's total [F4 qualifying care] receipts exceed the individual's limit (see sections 807 to 811).

(3) If they do not, the income is not charged to income tax (see sections 812 to 814).

(4) If they do, the individual may elect for an alternative method of calculating the income (see sections 815 to 819).

(5) If the [F5 qualifying care] receipts are the receipts of a trade, special rules apply —

(a) if the period of account of the trade does not end on 5th April (see sections 820 to 823), and

(b) in relation to capital allowances (see sections 824 to 827).

(6) The provisions of this Chapter which are expressed to apply in relation to trades also apply in relation to professions and vocations.

Textual Amendments

F3 S. 803(1) substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 2(2) (with Sch. 1 para. 37)

F4 Words in s. 803(2) substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 2(3) (with Sch. 1 para. 37)

F5 Words in s. 803(5) substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 2(3) (with Sch. 1 para. 37)

804 Person who qualifies for relief U.K.

[F6 (1) An individual qualifies for qualifying care relief for a tax year if the individual—

(a) has qualifying care receipts for the tax year (see section 805), and

(b) does not derive any taxable income, other than qualifying care receipts, from a relevant trade or arrangement.]

(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 or arrangement is one from which the individual derives [F7 qualifying care] receipts for the tax year.

[F8 (4) Subsection (1) is subject to section 804A.]

Textual Amendments

F6 S. 804(1) substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 3(2) (with Sch. 1 para. 37)

F7 Words in s. 804(3) substituted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 3(3) (with Sch. 1 para. 37)

F8 S. 804(4) inserted (16.12.2010) (with effect in accordance with Sch. 1 para. 36 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 1 para. 3(4) (with Sch. 1 para. 37)