Part 7

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

qualifying care relief

Capital allowances for foster carers carrying on trade

Plant or machinery used for care business
825B
1
This section applies if—
a
disposal receipts fall to be brought into account in a pool for a relevant chargeable period by virtue of section 825A, and
b
on the re-start date, the relevant individual still owns any of the plant or machinery which was in that pool and is still using any of it for the purposes of the care business.
2
The re-start date is the first day of the first subsequent chargeable period which is not a relevant chargeable period.
3
A reference in this section to the retained plant or machinery is to so much of the plant or machinery in the pool as the relevant individual—
a
still owns on the re-start date, and
b
is still using on that date for the purposes of the care business.
4
The individual is to be treated under
CAA
2001—
a
as having brought the retained plant or machinery into use on the re-start date for the purposes of the care business,
b
as having incurred capital expenditure on the provision of that plant or machinery for those purposes on that date, and
c
as owning that plant and machinery as a result of having incurred that expenditure.
5
The total amount of expenditure which the individual is to be treated as having incurred (for all of the retained plant or machinery) is the smaller of—
a
the total market value of the retained plant or machinery on the re-start date, and
b
an amount equal to the disposal receipts brought into account in the pool as described in subsection (1)(a).
6
If the individual is treated under section 13 of
CAA
2001 as having incurred notional expenditure before the re-start date as a result of bringing plant or machinery in the pool into use for the purposes of another activity, the amount mentioned in subsection (5)(b) must be reduced by the total amount of that expenditure, as determined in accordance with section 825C(2).
7
But subsection (6) does not apply if the plant or machinery which was brought into use for the purposes of another activity is the retained plant or machinery (for example, where it was brought into use only partly for the purposes of that other activity).
8
The question whether the provision of the retained plant or machinery is to be treated as wholly or only partly for the purposes of the care business is to be determined according to whether the use referred to in subsection (3)(b) is wholly or only partly for those purposes.
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)
Ss. 825-825D substituted (16.12.2010) for s. 825 (with effect in accordance with s. 3(4) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 3(3) (with s. 3(5))