Income Tax (Trading and Other Income) Act 2005

Individual’s limit

808 The individual’s limit

(1) For the purposes of this Chapter an individual’s limit for a tax year is the total of—

(a) the fixed amount for the tax year or, if section 809 or 810 applies, the individual’s share of that amount, and

(b) each amount per child for the individual for the tax year (see section 811).

(2) For the purposes of this Chapter the fixed amount for a tax year is £10,000.

(3) The Treasury may by order amend the sum for the time being specified in subsection (2).

809 Share of fixed amount: residence used by more than one foster carer

(1) This section applies if in a tax year—

(a) the residence used to provide the foster care from which an individual’s foster-care receipts for the tax year are derived is also used by another individual to provide foster care, and

(b) the other individual also has foster-care receipts for the tax year.

(2) Each individual’s share of the fixed amount for the tax year is the fixed amount divided by the total number of individuals who—

(a) use the residence in the tax year to provide foster care, and

(b) have foster-care receipts for the tax year.

(3) In this section “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.

(4) 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.

810 Share of fixed amount: income period not a year

(1) This section applies if in a tax year an individual’s income period for the individual’s foster-care receipts is a period other than a year.

(2) The individual’s share of the fixed amount for the tax year is—

where—

• AS is the fixed amount or (if section 809 applies) the individual’s share of the fixed amount, and

• D is the number of days in the individual’s income period.

811 The amount per child

(1) An individual’s amount per child for a tax year is found by multiplying—

(a) the number of weeks during the income period for the tax year in which the individual provides foster care for the child, by

(b) the weekly amount for the child.

(2) The weekly amount for a child is—

(a) £200 for a week throughout which the child is under 11 years old, and

(b) £250 for other weeks.

(3) The Treasury may by order amend any amount for the time being specified in subsection (2).

(4) If an individual provides foster care for a child during an income period for only part of a week, the part is treated as a whole week.

(5) If an income period begins or ends during a week, the week is treated as falling within the income period ending during the week.

But if there is no such income period, the week is treated as falling within the income period beginning during the week.

(6) A week is a period of 7 days beginning with a Monday.