E1.705 Qualifying Care Partial Relief—The Alternative Calculation Of Profits

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Commentary

Personal and employment tax

Where qualifying care receipts exceed an individual's limit (see E1.703), there is a choice. The income will be taxed as either trading or miscellaneous income by default, depending on its character. But election can be made to be taxed using the 'alternative method' which, like rent-a-room, permits deduction of the individual's limit in lieu of actual expenses.

The alternative method of calculating profits applies if:

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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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E1.705 Qualifying care partial relief—the alternative calculation of profits

Personal and employment tax

E5.607 Corporate members

I4.265 Lifetime transfers reported late

I7.333A Companies and replacement APR property

A4.214 Claims following further assessments—income tax and capital gains tax

I3.750 POAT—introduction to existing arrangements

B5.123 BPS—negligible value claims

C2.501A Compensation and capital gains tax—overview

B5.812A Particular charitable bodies

B5.820 Charity's profits of trade—general liability to income tax

I5.251 Absolute entitlement by the life tenant

B2.315 The concept of wholly and exclusively

C3.304 Rollover relief—expenditure on replacement assets qualifying for relief

E4.1118 Calculation and payment of tax due on retrospective income

E4.1318 Special mixed fund rules

B8.210 Restrictions on sideways loss relief

C3.305 Rollover relief—time limit for acquisition of replacement assets

C3.1705 Non-qualifying tax years, and disposals of a main home under NRCGT

E4.1167 Payments made after leaving and after issue of form P45

C3.1713 PPR relief where a dependent relative occupied the residence prior to 6 April 1988

D6.233 Rights issue—sale of rights nil paid

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E1.705 Qualifying care partial relief—the alternative calculation of profits

Personal and employment tax

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