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Where provision of care amounts to a trade, individuals may be entitled to full qualifying care relief (see E1.703) or partial relief (see 1.704). In either case, deduction for actual expenses is not permitted and capital allowance are not available.

Where partial relief (the alternative method) is available this is by election for a specific tax year. Where the election is not made, then income will be taxed as under the normal rules, and capital allowances are available against trading income.

To avoid anomalies in capital allowance claims where a carer moves from one basis of taxation to the other, there are additional rules. These address the situation where a trader obtains full qualifying care relief, or claims partial qualifying care relief, in one tax year and is taxed under normal trading rules in a previous or subsequent year.

The aim of the rules is to ensure that years in which the individual is taxed under normal trading income rules, capital allowances are claimed with broadly the same result as if the business