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Home / Simons-Taxes /Personal and employment tax /Part E1 Income tax /Division E1.7 Qualifying care and tax-free childcare relief /Qualifying care relief—foster care and shared lives care / E1.702 Qualifying care relief—basic definitions
Commentary

E1.702 Qualifying care relief—basic definitions

Personal and employment tax

While the mechanics of qualifying care relief are straightforward (see E1.703-1.705). The definition of terms and exceptions brings significant complexity. These are considered below.

Qualifying care receipts

The entry point for qualifying care relief is being in receipt of 'qualifying care receipts'1.

An individual has 'qualifying care receipts' for a tax year if:

  1. Ìý

    (a)ÌýÌýÌýÌý the receipts are in respect of the provision of qualifying care and they do not derive any taxable income, other than qualifying care receipts, from a relevant trade or arrangement2.

  2. Ìý

    A 'relevant trade or arrangement' is one from which the individual derives qualifying care receipts for the year (see below)3

  3. Ìý

    (b)ÌýÌýÌýÌý they accrue to the individual during the 'income period' for those receipts4, and

  4. Ìý

    (c)ÌýÌýÌýÌý the receipts would otherwise be brought into account in calculating the profits of a trade or chargeable to income tax under ITTOIA 2005, ss 687–689 (Pt 5, Ch 8) (income not otherwise charged, see Division E1.5)5 (ie the receipts are either trading

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