How is the fixed amount of qualifying care relief divided when multiple foster carers share the same residence?

Under section 809 of ITTOIA 2005, the fixed amount is divided equally by the total number of foster carers who both use the same residence to provide qualifying care and have qualifying care receipts in the same tax year. For example, two carers sharing a home each receive half the fixed amount.

Can one foster carer claim a larger share of the fixed amount based on the volume of care they provide?

No. Section 809 requires the fixed amount to be divided equally among all qualifying carers at the same residence. There is no provision for an uneven split based on the volume of care provided or the level of qualifying care receipts earned by each individual carer during the tax year.

Who counts towards the divisor when calculating the shared fixed amount under section 809?

Only individuals who meet both conditions are counted: they must use the residence to provide qualifying care during the tax year, and they must have qualifying care receipts for that same year. A person who meets only one condition is not included in the divisor for the calculation.

How does the shared fixed amount interact with per-child amounts in qualifying care relief?

Each foster carer adds their individually calculated per-child amounts to their share of the fixed amount to determine their total qualifying care relief threshold. While the fixed amount is shared equally among carers at the same residence, per-child amounts are calculated separately based on each carer's own placements.

Income Tax (Trading and Other Income) Act 2005 section 809

Share of fixed amount: residence used by more than one foster carer

Section 809 deals with how the fixed amount element of the qualifying care relief is divided when more than one foster carer operates from the same residence.

Where two or more foster carers provide qualifying care from the same residence in a tax year, the fixed amount must be shared between them.
The fixed amount is divided equally by the total number of carers using that residence who have qualifying care receipts for the year.
Each carer must both use the residence to provide qualifying care and have qualifying care receipts in the tax year to count towards the divisor.
The effect is that no individual can claim the full fixed amount if another carer at the same address also has qualifying care income in the same year.

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