Part 7Income charged under this Act: rent-a-room and F1qualifying care relief
Chapter 2F2qualifying care relief
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)
Periods of account not ending on 5th April
820Periods of account not ending on 5th April
F111
Sections 822 and 823 (which deal with the period of account of a trade not ending on 5th April) apply if—
a
an individual qualifies for F3qualifying care relief for a tax year,
b
the individual's F4qualifying care receipts for the tax year are the receipts of a trade, and
c
the period of account in which those receipts accrue does not end on 5th April in the tax year.
F122
Where an election under section 25A (cash basis for small businesses) has effect in relation to the trade, any reference in this section or sections 821 to 823 to the period of account in which receipts accrue is to be read as a reference to the period of account in which receipts are received.
821Meaning of “relevant limit”
1
For the purposes of sections 822 and 823 the “relevant limit” for a period of account in which the individual's F5qualifying care receipts accrue is found by adding—
a
the fixed amount for the tax year in which that period ends or (as the case may be) the individual's share of the fixed amount for that year (found in accordance with sections 808 to 810), and
b
for each of the tax years in which the period of account falls, each amount per F6adult or child for the individual for each part of the period of account falling in that tax year.
2
822Full relief
1
This section applies if the individual's total F8qualifying care receipts for the period of account do not exceed the individual's relevant limit for the period.
2
The profits or losses of the trade for the tax year are treated as nil.
823Alternative method of calculating profits
1
This section applies if—
a
the individual's total F9qualifying care receipts for the period of account exceed the individual's relevant limit for the period, and
b
the individual makes an election under this section.
2
The profits of the trade for the tax year are—
a
the individual's total F10qualifying care receipts for the period of account, less
b
the individual's relevant limit for the period.
3
Sections 818(2) and (3) and 819 (adjustment of assessment) apply for the purposes of an election under this section as they apply for the purposes of an election under those sections.
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)