Yn ddilys o 10/07/2003
10(1)This paragraph applies to an individual for a year of assessment for which—U.K.
(a)the individual qualifies for relief under this Schedule,
(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 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-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—
(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.
11U.K.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 vocation is other than 5th April) does not apply, and
(d)an election by him under paragraph 14 has effect.
12(1)This paragraph applies if—U.K.
(a)the alternative method of calculating profits applies to an individual for a year of assessment, and
(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 trade, profession or vocation, less
(b)the individual’s limit for the year.
13(1)This paragraph applies if—U.K.
(a)the alternative method of calculating profits applies to an individual 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—
(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.
14(1)An individual may elect—U.K.
(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 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 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
(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
(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—
(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.
15(1)This paragraph applies to an individual for a year of assessment for which—U.K.
(a)the individual qualifies for relief under this Schedule,
(b)his foster care receipts are the receipts of a trade, profession or vocation, and
(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 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-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.
(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.
(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
(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.
(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
(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 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.