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(5) In this Schedule, “foster care arrangement” means an arrangement by which | |
an individual provides foster care otherwise than as part of a trade, | |
profession or vocation carried on by that individual. | |
Meaning of “foster care receipts” | |
3 (1) For the purposes of this Schedule, receipts are “foster care receipts” of an | 5 |
individual for a year of assessment if— | |
(a) they are receipts in respect of the provision of foster care, | |
(b) apart from this Schedule, they would be chargeable— | |
(i) under Case I or II of Schedule D as the profits of a trade, | |
profession or vocation, or | 10 |
(ii) under Case VI of Schedule D as the profits of one or more | |
foster care arrangements, and | |
(c) they accrue to the individual during the income period for those | |
receipts specified below. | |
(2) In the case of receipts which would, apart from this Schedule, be chargeable | 15 |
under Case I or II of Schedule D as the profits of a trade, profession or | |
vocation, the income period for those receipts is the basis period of the trade, | |
profession or vocation for the year of assessment (see sections 60 to 63 of the | |
Taxes Act 1988). | |
(3) In the case of receipts which would, apart from this Schedule, be chargeable | 20 |
under Case VI of Schedule D as the profits of one or more foster care | |
arrangements, the income period for those receipts is the year of assessment. | |
Meaning of “provision of foster care” | |
4 (1) In this Schedule, the “provision of foster care” means the provision of | |
accommodation and maintenance for a child by an individual who— | 25 |
(a) is a person falling within any of sub-paragraphs (2) to (4), and | |
(b) is not a person who is excluded by sub-paragraph (5). | |
(2) A person falls within this sub-paragraph if he is a person with whom the | |
child has been placed under— | |
(a) section 23(2)(a) of the Children Act 1989 (c. 41) (provision of | 30 |
accommodation and maintenance for children by local authorities), | |
or | |
(b) section 59(1)(a) of that Act (provision of accommodation for children | |
by voluntary organisations). | |
(3) A person falls within this sub-paragraph if— | 35 |
(a) he is a person who 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 (c. 49) (as at 9th April | |
2003, see regulation 7 of the Fostering of Children (Scotland) | |
Regulations 1996 (S.I. 1996/3263)) and is providing accommodation | 40 |
for the child who is being “looked after” by a local authority within | |
the meaning of section 17(6) of the Children (Scotland) Act 1995 | |
(c. 36), or | |
(b) he is a person with whom the child has been placed— | |
(i) under regulations under section 5 of the Social Work | 45 |
(Scotland) Act 1968 (as at 9th April 2003, see regulations 14 | |
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and 16 of the Fostering of Children (Scotland) Regulations | |
1996), or | |
(ii) pursuant to a supervision requirement under section 70 of | |
the Children (Scotland) Act 1995. | |
(4) A person falls within this sub-paragraph if he is a person with whom the | 5 |
child has been placed under— | |
(a) Article 27(2)(a) of the Children (Northern Ireland) Order 1995 (S.I. | |
1995/755 (N.I. 2)) (provision of accommodation and maintenance for | |
children by authorities), or | |
(b) Article 75(1)(a) of that Order (provision of accommodation for | 10 |
children by voluntary organisations). | |
(5) The persons who are excluded are— | |
(a) a parent of the child; | |
(b) a person who is not a parent of the child but who has parental | |
responsibility, or (in Scotland) parental responsibilities, in relation to | 15 |
the child; | |
(c) where the child is in care and there was a residence order in force | |
with respect to him immediately before the care order was made, a | |
person in whose favour the residence order was made; | |
(d) in Scotland, where the child is in care and there was a residence order | 20 |
or a contact order in force with respect to him immediately before he | |
was placed in care, a person in whose favour the residence order or | |
contact order was made. | |
Meaning of “total foster care receipts” | |
5 (1) For the purposes of this Schedule, an individual’s “total foster care receipts” | 25 |
for a year of assessment or (as the case may be) a period of account are all of | |
the individual’s foster care receipts for that year or period. | |
(2) In calculating an individual’s total foster care receipts, no deduction is | |
allowed for any expenses or any other matter. | |
The individual’s limit | 30 |
6 The individual’s limit for a year of assessment is the total of— | |
(a) the individual’s share of the fixed amount for that year (see | |
paragraph 7), and | |
(b) each amount per child for that individual for that year (see | |
paragraph 8). | 35 |
The individual’s share of the fixed amount | |
7 (1) The fixed amount is £10,000. | |
(2) If, in a year of assessment, no adjustment falls to be made in the case of an | |
individual— | |
(a) under sub-paragraph (3), or | 40 |
(b) under sub-paragraph (4), | |
the individual’s share of the fixed amount for that year is the fixed amount. | |
(3) If, in a year of assessment,— | |
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(a) the residence used to provide the foster care from which an | |
individual’s foster care receipts for that year are derived is also used | |
by one or more other individuals for the provision of foster care, and | |
(b) that other individual, or those other individuals, also have foster care | |
receipts for that year, | 5 |
each individual’s share of the fixed amount for that year is that amount | |
divided by the total number of individuals who use the residence in that | |
year for the provision of foster care and have foster care receipts for that | |
year. | |
This sub-paragraph is subject to sub-paragraph (4). | 10 |
(4) If, in a year of assessment, the individual’s income period for his foster care | |
receipts is a period other than a year, the individual’s share of the fixed | |
amount for that year of assessment is found by multiplying the amount that | |
would be his share (apart from this sub-paragraph) by—![equation: over[char[D],num[365.00000000,"365"]]](missing.gif) | |
where D is the number of days in the individual’s income period. | 15 |
(5) In this paragraph “residence” means— | |
(a) a building, or part of a building, which is occupied or intended to be | |
occupied as a separate residence, or | |
(b) a caravan or houseboat. | |
(6) If a building or part of a building is designed for permanent use as a single | 20 |
residence, but is temporarily divided into two or more separate residences, | |
it is still treated as a single residence. | |
The amount per child | |
8 (1) An individual’s amount per child for a year of assessment is found by | |
multiplying— | 25 |
(a) the number of weeks during the income period for that year in which | |
the individual provides foster care for that child, by | |
(b) the weekly amount for that child. | |
(2) The weekly amount for a child is— | |
(a) £200 for a week throughout which the child is under 11 years old, | 30 |
and | |
(b) £250 for a week— | |
(i) in which the child reaches the age of 11, or | |
(ii) throughout which the child is 11 years old or over. | |
(3) Where in the case of any week an individual provides foster care for a child | 35 |
during an income period for part only of the week, that part of a week counts | |
as a whole week for the purposes of this paragraph. | |
(4) Where an income period begins or ends during a week, that week is to be | |
counted for the purposes of this paragraph as falling within the income | |
period which ends during the week (unless there is no such income period, | 40 |
in which case it falls within the income period which begins during the | |
week). | |
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(5) In this paragraph “week” means any period of seven days beginning with a | |
Monday. | |
Power to alter amounts | |
9 The Treasury may by order amend the amounts for the time being specified | |
in paragraph 7(1) and 8(2). | 5 |
Part 2 | |
The exemption and the alternative methods of calculation | |
The exemption | |
10 (1) This paragraph applies to an individual for a year of assessment for which— | |
(a) the individual qualifies for relief under this Schedule, | 10 |
(b) his total foster care receipts do not exceed his limit, and | |
(c) paragraph 15 (cases where accounting date for trade, profession or | |
vocation is other than 5th April) does not apply. | |
(2) If the individual’s foster care receipts for the year of assessment are the | |
receipts of a trade, profession or vocation, the profits or losses from that | 15 |
trade, profession or vocation for the year are to be treated as nil. | |
(3) If, in a case falling within sub-paragraph (2), the individual would, apart | |
from that sub-paragraph, be entitled to a deduction for the year under | |
section 63A(1) or (3) of the Taxes Act 1988 (overlap profits and overlap | |
losses), the individual is entitled to that deduction notwithstanding that sub- | 20 |
paragraph. | |
(4) Sub-paragraph (5) applies if the individual’s foster care receipts for the year | |
of assessment are receipts from one or more foster care arrangements. | |
(5) For each foster care arrangement from which those receipts arise, the | |
amount of— | 25 |
(a) the receipts arising in the year of assessment from the arrangement, | |
less | |
(b) any expenses associated with those receipts, | |
is to be treated as nil. | |
Alternative calculation of profits where amount is above the limit | 30 |
11 The alternative method of calculating profits given in paragraphs 12 and 13 | |
applies to an individual for a year of assessment for which— | |
(a) the individual qualifies for relief under this Schedule, | |
(b) his total foster care receipts exceed his limit, | |
(c) paragraph 15 (cases where accounting date for trade, profession or | 35 |
vocation is other than 5th April) does not apply, and | |
(d) an election by him under paragraph 14 has effect. | |
Alternative calculation of profits: income from trade, etc | |
12 (1) This paragraph applies if— | |
(a) the alternative method of calculating profits applies to an individual | 40 |
for a year of assessment, and | |
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(b) his foster care receipts for the year are the receipts of a trade, | |
profession or vocation. | |
(2) The profits of the year of assessment of the trade, profession or vocation | |
from which the individual’s foster care receipts arise are— | |
(a) the amount of the foster care receipts for the year arising from the | 5 |
trade, profession or vocation, less | |
(b) the individual’s limit for the year. | |
Alternative calculation of profits: income charged under Case VI of Schedule D | |
13 (1) This paragraph applies if— | |
(a) the alternative method of calculating profits applies to an individual | 10 |
for a year of assessment, and | |
(b) his foster care receipts for the year are receipts from one or more | |
foster care arrangements. | |
(2) The amount of the profits of the year of assessment from all of the foster care | |
arrangements from which the individual’s foster care receipts arise is— | 15 |
(a) the sum of the foster care receipts for the year from each foster care | |
arrangement from which those receipts arise, less | |
(b) the individual’s limit for the year. | |
Election for alternative method | |
14 (1) An individual may elect— | 20 |
(a) for the alternative method of calculating profits given in paragraph | |
12 or 13 to apply if the conditions specified in paragraph 11(a), (b) | |
and (c) are met, and | |
(b) for the alternative method of calculating profits given in sub- | |
paragraph (5) of paragraph 15 to apply if the conditions specified in | 25 |
paragraphs (a) and (b) of sub-paragraph (4) of that paragraph are | |
met. | |
(2) An election under this paragraph has effect for the year of assessment for | |
which it is made. | |
(3) Subject to sub-paragraphs (5) and (6), an election under this paragraph must | 30 |
be made on or before the election deadline for the year of assessment to | |
which it relates. | |
(4) The election deadline for a year of assessment is— | |
(a) the first anniversary of the 31st January next following that year of | |
assessment, or | 35 |
(b) such later date as the Board may in any particular case allow. | |
(5) If— | |
(a) an individual does not make an election under this paragraph for a | |
year of assessment on or before the election deadline for that year, | |
and | 40 |
(b) an adjustment is made after that deadline to the profits from his | |
provision of foster care on which he is chargeable to tax for that year, | |
the individual may make an election under this paragraph for the year on or | |
before the date specified in sub-paragraph (6). | |
(6) That date is— | 45 |
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(a) the first anniversary of the 31st January next following the year of | |
assessment in which the adjustment is made, or | |
(b) such later date as the Board may in any particular case allow. | |
(7) Any election under this paragraph must be made in writing to an officer of | |
the Board. | 5 |
Periods of account ending otherwise than on 5th April | |
15 (1) This paragraph applies to an individual for a year of assessment for which— | |
(a) the individual qualifies for relief under this Schedule, | |
(b) his foster care receipts are the receipts of a trade, profession or | |
vocation, and | 10 |
(c) the period of account in which his foster care receipts accrue ends on | |
a day other than 5th April in that year of assessment. | |
(2) If the individual’s total foster care receipts for the period of account do not | |
exceed the relevant limit for that period (see sub-paragraph (6) or (8)) the | |
profits or losses from his trade, profession or vocation for the year of | 15 |
assessment are to be treated as nil. | |
(3) If, in a case falling within sub-paragraph (2), the individual would, apart | |
from that sub-paragraph, be entitled to a deduction for the year under | |
section 63A(1) or (3) of the Taxes Act 1988 (overlap profits and overlap | |
losses), the individual is entitled to that deduction notwithstanding that sub- | 20 |
paragraph. | |
(4) Sub-paragraph (5) applies where— | |
(a) the individual’s total foster care receipts for the period of account | |
exceed the relevant limit for that period, and | |
(b) an election by him under paragraph 14 has effect. | 25 |
(5) The profits of the year of assessment of the trade, profession or vocation | |
from which the individual’s foster care receipts arise are— | |
(a) the amount of the foster care receipts arising from the trade, | |
profession or vocation for the period of account, less | |
(b) the relevant limit for that period. | 30 |
(6) If the period of account in which the individual’s foster care receipts accrue | |
ends in the year 2003-04, “the relevant limit” for that period is found by | |
aggregating— | |
(a) the individual’s share of the fixed amount for the year 2003-04 | |
(found in accordance with paragraph 7), and | 35 |
(b) each amount per child for that individual for that period of account. | |
(7) For the purposes of sub-paragraph (6), an individual’s amount per child for | |
the period of account is each amount that would be his amount per child by | |
virtue of paragraph 8 for the year 2003-04 if that period of account were the | |
income period for that year. | 40 |
(8) If the period of account in which the individual’s foster care receipts accrue | |
ends in a year subsequent to the year 2003-04, “the relevant limit” for that | |
period is found by aggregating— | |
(a) the individual’s share of the fixed amount for the year in which the | |
period of account ends (found in accordance with paragraph 7), and | 45 |
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(b) for each of the years of assessment in which the period of account | |
falls, each amount per child for that individual for each part of that | |
period of account which falls within that year of assessment. | |
(9) For the purposes of sub-paragraph (8), an individual’s amount per child for | |
a part of a period of account is each amount that would be his amount per | 5 |
child by virtue of paragraph 8 for the year of assessment in which the part of | |
that period falls if that part of the period of account were the income period | |
for that year. | |
Part 3 | |
Capital allowances | 10 |
Introductory | |
16 (1) Paragraphs 17 to 19 make provision for the application of the Capital | |
Allowances Act 2001 (c. 2) (“CAA 2001”) in relation to— | |
(a) a relevant individual, and | |
(b) a relevant chargeable period of that individual. | 15 |
(2) For this purpose, a “relevant individual” is an individual who, in a year of | |
assessment, satisfies the conditions in sub-paragraphs (3) and (4). | |
(3) The first condition is that in the year of assessment the individual would, | |
apart from this Schedule, have foster care receipts chargeable— | |
(a) under Case I or II of Schedule D as the profits of a trade, profession | 20 |
or vocation, or | |
(b) under Case VI of Schedule D as the profits of one or more foster care | |
arrangements. | |
(4) The second condition is that— | |
(a) the exemption in paragraph 10 or (as the case may be) 15(2) applies | 25 |
to the individual for the year of assessment, or | |
(b) the individual has elected for the alternative method of calculating | |
profits in paragraph 12, 13 or (as the case may be) 15(5) to apply to | |
him for the year of assessment. | |
(5) A period is a “relevant chargeable period” of a relevant individual if— | 30 |
(a) it is a chargeable period of the individual, | |
(b) it corresponds to an income period for the individual’s foster care | |
receipts in a year of assessment, and | |
(c) that year of assessment is a year in which the individual satisfies the | |
conditions in sub-paragraphs (3) and (4). | 35 |
Provisions applying in relation to carried forward unrelieved qualifying expenditure | |
17 (1) This paragraph applies in any case where— | |
(a) there is any available qualifying expenditure in a relevant pool for a | |
relevant chargeable period of a relevant individual, | |
(b) that expenditure is unrelieved qualifying expenditure carried | 40 |
forward in the pool from the previous chargeable period under | |
section 59 of CAA 2001, and | |
(c) that previous chargeable period was not a relevant chargeable | |
period. | |
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