Part 7

Income charged under this Act: rent-a-room and qualifying care relief
Chapter 2

qualifying care relief

Basic definitions

Meaning of “qualifying care receipts”
805
1
For the purposes of this Chapter an individual has qualifying care receipts for a tax year if —
a
the receipts are in respect of the provision of qualifying care,
b
they accrue to the individual during the income period for those receipts (see subsection (3)), and
c
the receipts would otherwise be brought into account in calculating the profits of a trade or chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
... the income period is the tax year.
4
Subsections (5) and (6) apply if—
a
the receipts would otherwise be brought into account in calculating the profits of a trade, and
b
the profits of the trade are required under
section 24A
to be calculated on the cash basis.
5
Any amounts brought into account under section 96A
(capital receipts under, or after leaving, cash basis)
as a receipt in calculating the profits of the trade are to be treated as receipts within paragraph (a) of subsection (1) above.
6
The reference in subsection (1)(b) to receipts that accrue to an individual during the income period for those receipts is to be read as a reference to receipts that are received by the individual during that period.

Meaning of providing qualifying care
805A
For the purposes of this Chapter qualifying care is provided if an individual (alone or in partnership) provides—
a
foster care but not shared lives care,
b
shared lives care but not foster care, or
c
both foster care and shared lives care.

Meaning of providing foster care
806
1
For the purposes of this Chapter foster care is provided if an individual—
a
provides accommodation and maintenance for a child, and
b
does so as a foster carer.
2
An individual is a foster carer if the child is placed with the individual by virtue of a compulsory supervision order or interim compulsory supervision order, or under any of the following enactments, unless the individual is excluded by subsection (5).
3
The enactments are—
a
section 22C or 59(1)(a) of the Children Act 1989 (c. 41) (provision of accommodation for children by local authorities or voluntary organisations),
aa
section 81 of the Social Services and Well-being (Wales) Act 2014 (provision of accommodation for children by local authorities).
b
regulations under section 5 of the Social Work (Scotland) Act 1968 (c. 49),
c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
d
Article 27(2)(a) or 75(1)(a) of the Children (Northern Ireland) Order 1995 (S.I. 1995/755 (N.I. 2)) (provision of accommodation for children by authorities or voluntary organisations).
4
An individual is also a foster carer if the individual is approved as a foster carer by a local authority or a voluntary organisation in accordance with regulations under section 5 of the Social Work (Scotland) Act 1968, and the child in respect of whom the accommodation is provided—
a
is being looked after by a local authority within the meaning of section 17(6) of the Children (Scotland) Act 1995, or
b
is subject to an order or warrant made by the children’s hearing or sheriff under the Children’s Hearings (Scotland) Act 2011,
unless the individual is excluded by subsection (5).
5
The following are excluded individuals—
a
a parent of the child,
b
an individual who is not a parent of the child but who has parental responsibility (or, in Scotland, parental responsibilities) in relation to the child,
ba
where the child is in care and there was a child arrangements order in force with respect to the child immediately before the care order was made, a person named in the child arrangements order as a person with whom the child was to live,
bb
(in Scotland) where the child is in care and there was a child arrangements order in force with respect to the child immediately before the child was placed in care, a person named in the child arrangements order as a person with whom the child was to live, spend time or otherwise have contact,
c
if the child is in care and there was a residence order in force with respect to the child immediately before the care order was made, an individual in whose favour the residence order was made, ...
d
(in Scotland) if the child is in care and there was a residence order or contact order in force with respect to the child immediately before the child was placed in care, an individual in whose favour the residence order or contact order was made.; and
e
an individual with whom the child is placed under a placement falling within section 22C(6)(d) of the Children Act 1989.
f
an individual with whom the child is placed under a placement falling within section 81(6)(d) of the Social Services and Well-being (Wales) Act 2014.
6
In this section—
- “compulsory supervision order” has the meaning given by section 83 of the Children’s Hearings (Scotland) Act 2011; and
- “interim compulsory supervision order” has the meaning given by section 86 of that Act.

Meaning of providing shared lives care
806A
1
For the purposes of this Chapter shared lives care is provided by an individual if—
a
the individual provides accommodation and care for an adult or child (“X”) who has been placed with the individual, and
b
the conditions in subsection (2) are met.
2
The conditions are—
a
the accommodation is in the individual's own home,
b
the accommodation and care are provided on the basis that X will share the individual's home and daily family life during the placement,
c
the placement is made under a specified social care scheme,
d
the individual does not provide the accommodation and care as a foster carer, and
e
the individual is not excluded within the meaning of section 806(5).
3
Section 806(5) has effect for the purposes of subsection (2)(e) as if references to the child were to X (whatever X's age).
4
“
Specified social care scheme
” means a social care scheme of a kind specified or described in an order made by the Treasury.
5
An order under subsection (4) may make provision having effect in relation to the tax year current on the day on which the order is made.
6
In this section—
- “
care
” means personal care, including assistance and support;
- “
home
” means an individual's only or main residence;
- “
social care scheme
” means a scheme, service or arrangement for those who, by reason of age, illness, disability or other vulnerability, are in need of care.

Meaning of “residence”
806B
1
In this Chapter “
residence
” means—
a
a building, or part of a building, occupied or intended to be occupied as a separate residence, or
b
a caravan or houseboat.
2
If a building, or part of a building, designed for permanent use as a single residence is temporarily divided into two or more separate residences, it is still treated as a single residence.

Calculation of “total qualifying care receipts”
807
For the purposes of this Chapter, in calculating an individual's “total qualifying care receipts” for a tax year, no deduction is allowed for expenses or any other matter.
Word in s. 806(3)(a) substituted (1.4.2011 for E., 6.4.2016 for W.) by Children and Young Persons Act 2008 (c. 23), s. 44(4), Sch. 1 para. 18(2); S.I. 2010/2981, art. 4(a); S.I. 2016/452, art. 2(b)
Ss. 806A, 806B 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. 7 (with Sch. 1 para. 37)
S. 806(5)(e) and word inserted (1.4.2011 for E., 6.4.2016 for W.) by Children and Young Persons Act 2008 (c. 23), s. 44(4), Sch. 1 para. 18(3)(b); S.I. 2010/2981, art. 4(a); S.I. 2016/452, art. 2(b)
S. 806(2) substituted (24.6.2013) by The Children’s Hearings (Scotland) Act 2011 (Consequential and Transitional Provisions and Savings) Order 2013 (S.I. 2013/1465), art. 1(2), Sch. 1 para. 10(a); S.S.I. 2013/195, art. 2
S. 806(5)(f) inserted (E.W.) (6.4.2016) by The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) Regulations 2016 (S.I. 2016/413), regs. 2(1), 225(b)
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)
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)
S. 806(3)(c) omitted (24.6.2013) by virtue of The Children’s Hearings (Scotland) Act 2011 (Consequential and Transitional Provisions and Savings) Order 2013 (S.I. 2013/1465), art. 1(2), Sch. 1 para. 10(b); S.S.I. 2013/195, art. 2
Words in s. 805(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. 5(1)(a) (with Sch. 1 para. 37)
S. 806(5)(ba)(bb) inserted (22.4.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 2 para. 69; S.I. 2014/889, art. 4(f) (with transitional provisions in S.I. 2014/1042, arts. 3, 4, 6-10)
Words in s. 805(1)(a) 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. 5(1)(b) (with Sch. 1 para. 37)
Words in s. 805(5) substituted (16.11.2017) (with effect in accordance with Sch. 2 para. 64 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 2 para. 11
Words in s. 805 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. 5(2) (with Sch. 1 para. 37)
Word in s. 806(5) repealed (1.4.2011 for E., 6.4.2016 for W.) by Children and Young Persons Act 2008 (c. 23), s. 44(4), Sch. 1 para. 18(3)(a), Sch. 4; S.I. 2010/2981, art. 4(a)(l); S.I. 2016/452, art. 2(b)
S. 806(6) inserted (24.6.2013) by The Children’s Hearings (Scotland) Act 2011 (Consequential and Transitional Provisions and Savings) Order 2013 (S.I. 2013/1465), art. 1(2), Sch. 1 para. 10(d); S.S.I. 2013/195, art. 2
Words in s. 807 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. 8(2) (with Sch. 1 para. 37)
S. 806(3)(aa) inserted (E.W.) (6.4.2016) by The Social Services and Well-being (Wales) Act 2014 (Consequential Amendments) Regulations 2016 (S.I. 2016/413), regs. 2(1), 225(a)
Words in s. 807 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. 8(1) (with Sch. 1 para. 37)
S. 806(4) substituted (24.6.2013) by The Children’s Hearings (Scotland) Act 2011 (Consequential and Transitional Provisions and Savings) Order 2013 (S.I. 2013/1465), art. 1(2), Sch. 1 para. 10(c); S.S.I. 2013/195, art. 2
S. 805A 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. 6 (with Sch. 1 para. 37)
S. 805(4)-(6) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 42
Words in s. 805(1)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 23(2), 61(1)
S. 805(2) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 23(3), 61(1)
Word in s. 805(3) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 23(4), 61(1)
S. 805(4)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 10 paras. 33, 47 (with Sch. 10 paras. 48-50)