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.
(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 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 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—
(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).
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 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.
(2)In any such case, CAA 2001 has effect in relation to the relevant individual’s available qualifying expenditure in the pool for the relevant chargeable period as if—
(a)a disposal event occurred immediately after the beginning of the period,
(b)disposal receipts fall to be brought into account in the pool for that period by reason of that event, and
(c)the total of those disposal receipts equals the amount of the unrelieved qualifying expenditure carried forward in the pool from the previous chargeable period under section 59 of CAA 2001.
(3)In any such case, section 13 of CAA 2001 (use for qualifying activity of plant and machinery provided for other purposes) shall apply as if, on the first day of the first subsequent chargeable period which is not a relevant chargeable period,—
(a)the relevant individual brings into use for the purposes of his provision of foster care such of the plant or machinery on which the unrelieved qualifying expenditure was incurred as he still owns on that day, and
(b)he owns that plant or machinery as a result of having incurred capital expenditure on its provision for purposes other than those of the provision of foster care.
(4)In this paragraph “relevant pool” means a pool containing expenditure incurred on the provision of plant or machinery wholly or partly for the purposes of the provision of foster care by the relevant individual.
18Capital expenditure (“excluded capital expenditure”) which is incurred—
(a)by a relevant individual,
(b)in a relevant chargeable period, and
(c)on the provision of plant or machinery wholly or partly for the purposes of the provision of foster care by the individual,
does not constitute qualifying expenditure for the purposes of CAA 2001.
19Where a relevant individual incurs excluded capital expenditure in a relevant chargeable period, section 13 of CAA 2001 shall apply as if, on the first day of the first subsequent chargeable period which is not a relevant chargeable period,—
(a)he brings into use for the purposes of his provision of foster care such of the plant or machinery on which the expenditure was incurred as he still owns on that day, and
(b)he owns that plant or machinery as a result of having incurred capital expenditure on its provision for purposes other than those of the provision of foster care.
20Expressions which—
(a)are used in this Part, and
(b)are used in CAA 2001, but
(c)apart from this paragraph, are not defined in this Schedule,
have the same meaning in this Part as in that Act.