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Extension of foster-care relief |
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1 | Chapter 2 of Part 7 of ITTOIA 2005 (foster-care relief) is amended as follows. |
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2 (1) | Section 803 (overview of Chapter 2) is amended as follows. |
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(2) | For subsection (1) substitute— |
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“(1) | This Chapter provides relief on income from the provision by an |
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individual of qualifying care. |
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| The relief is referred to in this Chapter as “qualifying care relief”.” |
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(3) | In subsections (2) and (5), for “foster-care” substitute “qualifying care”. |
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3 (1) | Section 804 (person who qualifies for relief) is amended as follows. |
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(2) | For subsection (1) substitute— |
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“(1) | An individual qualifies for qualifying care relief for a tax year if the |
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(a) | has qualifying care receipts for the tax year (see section 805), |
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(b) | does not derive any taxable income, other than qualifying |
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care receipts, from a relevant trade or arrangement.” |
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(3) | In subsection (3), for “foster-care” substitute “qualifying care”. |
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(4) | After that subsection insert— |
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“(4) | Subsection (1) is subject to section 804A.” |
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4 | After section 804 insert— |
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“804A | Shared lives care: further condition for relief |
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(1) | This section applies if an individual (“N”) has qualifying care |
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receipts for a tax year in respect of the provision of shared lives care. |
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(2) | N does not qualify for qualifying care relief in respect of those |
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receipts if the placement cap is exceeded for the residence (or any of |
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the residences) used by N to provide the care from which those |
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(3) | The placement cap is exceeded for a residence if, at any given time |
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during the relevant period, shared lives care is being provided there |
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(whether by N or anyone else) for more than 3 people in total. |
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(4) | The relevant period, in relation to a residence, is the period for which |
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the residence is N’s only or main residence during the income period |
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for the receipts (see section 805). |
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(5) | If the placement cap is so exceeded but N also has qualifying care |
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receipts for the tax year in respect of the provision of foster care, this |
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Chapter is to apply to N for the tax year as if— |
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(a) | references to qualifying care were to foster care, and |
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(b) | accordingly, references (other than in this section) to |
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qualifying care receipts did not include receipts in respect of |
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the provision of shared lives care. |
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(6) | In determining the number of people for whom shared lives care is |
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being provided at any given time, brothers and sisters (including |
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half-brothers and half-sisters) count as one person.” |
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5 (1) | In section 805(1) (meaning of “foster-care receipts”)— |
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(a) | for “foster-care” substitute “qualifying care”, and |
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(b) | in paragraph (a), for “foster care” substitute “qualifying care”. |
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(2) | Accordingly, in the heading of section 805, for “foster-care” substitute |
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6 | After section 805 insert— |
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“805A | Meaning of providing qualifying care |
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For the purposes of this Chapter qualifying care is provided if an |
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individual (alone or in partnership) provides— |
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(a) | foster care but not shared lives care, |
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(b) | shared lives care but not foster care, or |
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(c) | both foster care and shared lives care.” |
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7 | After section 806 insert— |
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“806A | Meaning of providing shared lives care |
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(1) | For the purposes of this Chapter shared lives care is provided by an |
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(a) | the individual provides accommodation and care for an adult |
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or child (“X”) who has been placed with the individual, and |
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(b) | the conditions in subsection (2) are met. |
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(a) | the accommodation is in the individual’s own home, |
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(b) | the accommodation and care are provided on the basis that X |
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will share the individual’s home and daily family life during |
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(c) | the placement is made under a specified social care scheme, |
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(d) | the individual does not provide the accommodation and care |
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(e) | the individual is not excluded within the meaning of section |
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(3) | Section 806(5) has effect for the purposes of subsection (2)(e) as if |
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references to the child were to X (whatever X’s age). |
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(4) | “Specified social care scheme” means a social care scheme of a kind |
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specified or described in an order made by the Treasury. |
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(5) | An order under subsection (4) may make provision having effect in |
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relation to the tax year current on the day on which the order is |
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“care” means personal care, including assistance and support; |
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“home” means an individual’s only or main residence; |
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“social care scheme” means a scheme, service or arrangement |
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for those who, by reason of age, illness, disability or other |
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vulnerability, are in need of care. |
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806B | Meaning of “residence” |
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(1) | In this Chapter “residence” means— |
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(a) | a building, or part of a building, occupied or intended to be |
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occupied as a separate residence, or |
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(b) | a caravan or houseboat. |
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(2) | If a building, or part of a building, designed for permanent use as a |
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single residence is temporarily divided into two or more separate |
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residences, it is still treated as a single residence.” |
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8 (1) | In section 807 (calculation of “total foster-care receipts”), for “foster-care” |
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substitute “qualifying care”. |
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(2) | Accordingly, in the heading of that section, for “foster-care” substitute |
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9 | In section 808(1)(b) (the individual’s limit), before “child” insert “adult or”. |
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10 | For section 809 substitute— |
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“809 | Share of fixed amount: residence used by more than one carer |
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“(1) | This section applies if in a tax year— |
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(a) | the residence used to provide the qualifying care from which |
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an individual’s qualifying care receipts for the tax year are |
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derived is also used by another individual to provide |
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(b) | the other individual also has qualifying care receipts for the |
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(2) | Each individual’s share of the fixed amount for the tax year is the |
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fixed amount divided by the total number of individuals who— |
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(a) | use the residence in the tax year to provide qualifying care, |
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(b) | have qualifying care receipts for the tax year.” |
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11 | In section 810(1) (share of fixed income: income period not a year), for |
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“foster-care” substitute “qualifying care”. |
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12 (1) | Section 811 (the amount per child) is amended as follows. |
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(2) | For subsection (1) substitute— |
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“(1) | An individual’s amount per adult or child for a tax year is found by |
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(a) | the number of weeks during the income period for the tax |
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year in which the individual provides qualifying care for the |
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(b) | the weekly amount for the adult or child. |
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(1A) | The weekly amount for an adult is £250.” |
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(3) | In subsection (3), for “subsection (2)” substitute “subsection (1A) or (2)”. |
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(4) | In subsection (4), for “foster care for a child” substitute “qualifying care for |
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(5) | Accordingly, in the heading, before “child” insert “adult or”. |
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13 | For section 812 substitute— |
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“812 | Full qualifying care relief: introduction |
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Sections 813 and 814 (which give the full form of qualifying care |
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(a) | an individual qualifies for qualifying care relief for a tax year, |
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(b) | the individual’s total qualifying care receipts for the tax year |
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do not exceed the individual’s limit for the tax year, and |
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(c) | sections 822 and 823 do not apply (accounting date for trade |
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14 (1) | In section 813(1) (full foster-care relief: trading income), for “foster-care” |
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substitute “qualifying care”. |
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(2) | Accordingly, in the heading of section 813, for “foster-care” substitute |
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15 (1) | In section 814(1) (full foster-care relief: income chargeable under Chapter 8 |
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of Part 5), for “foster-care” substitute “qualifying care”. |
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(2) | Accordingly, in the heading of section 814, for “foster-care” substitute |
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16 | In section 815(a) and (b) (alternative calculation of profits: introduction), for |
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“foster-care” substitute “qualifying care”. |
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17 | In section 816(1) and (2)(a) (alternative calculation of profits: trading |
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income), for “foster-care” substitute “qualifying care”. |
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18 | In section 817(1) and (2)(a) (alternative calculation of profits: income |
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chargeable under Chapter 8 of Part 5), for “foster-care” substitute |
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19 | In section 818(1)(a) and (b) (election for alternative method of calculating |
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profits), for “foster-care” substitute “qualifying care”. |
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20 | In section 819(1)(b) (adjustment of assessment), for “foster care” substitute |
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21 | In section 820(a) and (b) (periods of account not ending on 5th April), for |
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“foster-care” substitute “qualifying care”. |
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22 (1) | Section 821 (meaning of “relevant limit”) is amended as follows. |
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(a) | for “foster-care” substitute “qualifying care”, and |
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(b) | in paragraph (b), before “child” insert “adult or”. |
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(3) | In subsection (2), before “child”, in both places where it occurs, insert “adult |
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23 | In section 822(1) (full relief), for “foster-care” substitute “qualifying care”. |
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24 | In section 823(1)(a) and (2)(a) (alternative method of calculating profits), for |
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“foster-care” substitute “qualifying care”. |
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25 | In section 824(1)(a) and (2)(b) (capital allowances: introduction), for “foster- |
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care” substitute “qualifying care”. |
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26 | In section 825(2) and (4)(a) (carried forward unrelieved qualifying |
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expenditure), for “foster care” substitute “qualifying care”. |
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27 | In section 826(b) (excluded capital expenditure), for “foster care” substitute |
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28 | In section 827(a) (excluded capital expenditure: subsequent treatment of |
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asset), for “foster care” substitute “qualifying care”. |
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29 | Accordingly, for the heading of Chapter 2 of Part 7 of ITTOIA 2005 |
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substitute “qualifying care relief”. |
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30 | ITTOIA 2005 is amended as follows. |
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31 | In section 1(5) (overview of Act), for “foster-care” substitute “qualifying |
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32 (1) | In section 23 (rent-a-room and foster-care relief)— |
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(a) | in subsection (3), for “foster-care” substitute “qualifying care”, and |
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(b) | in subsection (4), for “foster care” substitute “qualifying care”. |
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(a) | in the heading of that section, for “foster-care” substitute |
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(b) | in the heading immediately preceding that section, for “foster-care” |
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substitute “qualifying care”. |
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33 | In section 688(2)(b) (income charged), for “foster care” substitute “qualifying |
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34 | In the heading of Part 7, for “FOSTER-CARE” substitute “QUALIFYING |
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35 | In the table in Part 2 of Schedule 4 (index of expressions defined in this Act |
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(a) | omit the entries for “foster-care receipts” and “foster-care relief”, |
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(b) | after the entry for “provides foster care” insert— |
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| “provides qualifying care (in Chapter 2 of |
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| provides shared lives care (in Chapter 2 of |
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(c) | after the entry for “purchased life annuity” insert— |
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| “qualifying care receipts (in Chapter 2 of |
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(d) | after the entry for “residence” insert— |
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| “residence (in Chapter 2 of Part 7) |
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(e) | in the entry for “total foster-care receipts”, for “foster-care” substitute |
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36 (1) | The amendments made by this Schedule have effect for the tax year 2010-11 |
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and subsequent tax years. |
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(2) | But an individual within sub-paragraph (3) may elect to be treated for |
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income tax purposes as if those amendments had effect instead for the tax |
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year 2011-12 and subsequent tax years (and accordingly to remain entitled, |
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for the tax year 2010-11, to the benefit of any relevant concession so far as |
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applicable to the individual). |
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(3) | An individual is within this sub-paragraph if the individual has qualifying |
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care receipts for the tax year 2010-11 in respect of the provision of shared |
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lives care (with or without qualifying care receipts in respect of the provision |
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(4) | A relevant concession is an existing HMRC concession (within the meaning |
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of section 160 of FA 2008)— |
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(a) | which is in force immediately before the passing of this Act, and |
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(b) | to which effect is given (in whole or in part) by this Schedule. |
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(5) | An election under sub-paragraph (2) must be made on or before the first |
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anniversary of the normal self-assessment filing date for the tax year 2010-11 |
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(or such later date as an officer of Revenue and Customs may, in a particular |
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37 (1) | This paragraph applies if— |
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(a) | an individual had qualifying care receipts in respect of the provision |
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(i) | for the pre-commencement tax year, or |
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(ii) | for a continuous series of tax years up to and including the |
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pre-commencement tax year, |
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(b) | the receipts were receipts of a trade, |
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