Income Tax (Trading and Other Income) Act 2005 section 804A

Shared lives care: further condition for relief

Section 804A sets out the conditions under which an individual providing shared lives care may lose entitlement to qualifying care relief, specifically where the number of people cared for at a residence exceeds the placement cap.

• An individual providing shared lives care qualifies for qualifying care relief on their receipts, but only if the placement cap is not exceeded at any residence used to provide the care.
• The placement cap is exceeded if, at any point during the relevant period, more than three people in total are receiving shared lives care at the residence — regardless of who is providing the care — though siblings (including half-siblings) count as one person for this purpose.
• If the placement cap is exceeded but the individual also has qualifying care receipts from foster care, the relief provisions still apply but only in respect of the foster care receipts; shared lives care receipts are excluded.
• The relevant period is the time during which the residence is the individual's only or main home within the income period for the receipts, as defined in section 805.