Income Tax (Trading and Other Income) Act 2005 section 808

The individual's limit

Section 808 defines the individual's "limit" for a tax year for the purposes of foster care relief, which determines the maximum amount of qualifying care income that is not charged to income tax.

• The individual's limit for a tax year is calculated by adding together a fixed amount and the amounts per adult or child cared for during the year.
• The fixed amount is £18,140 per tax year, though this may be shared if more than one foster carer uses the same residence or the income period is not a full year.
• The amounts per adult or child are additional sums added on top of the fixed amount for each person cared for, as set out in section 811.
• The individual's limit is compared against total qualifying care receipts to determine whether full exemption or partial relief applies.