Part 7Income charged under this Act: rent-a-room and F1qualifying care relief

Annotations:
Amendments (Textual)
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 2F2qualifying care relief

Annotations:
Amendments (Textual)
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)

Basic definitions

805Meaning of “F6qualifying care receipts

1

For the purposes of this Chapter an individual has F3qualifying care receipts for a tax year if —

a

the receipts are in respect of the provision of F4qualifying care,

b

they accrue to the individual during the income period for those receipts (see subsections (2) and (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

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 Chapter 15 of Part 2).

3

Otherwise the income period is the tax year.

F74

Subsections (5) and (6) apply if—

a

the receipts would otherwise be brought into account in calculating the profits of a trade, and

b

an election under section 25A (cash basis for small businesses) has effect in relation to the trade.

5

Any amounts brought into account under section 96A F5(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.