Income Tax (Trading and Other Income) Act 2005 section 813

Full qualifying care relief: trading income

Section 813 provides for full qualifying care relief where the individual's qualifying care receipts form part of their trading income, by treating the trade profits or losses as nil for the tax year.

• This section applies when an individual's qualifying care receipts would normally be included in calculating the profits of a trade.
• Where full qualifying care relief applies, the profits or losses of that trade for the tax year are treated as nil — meaning no taxable profit arises and no allowable loss is recognised.
• The effect is that the individual pays no income tax on their qualifying care receipts and cannot claim a trading loss for that year.
• This relief applies specifically to qualifying care receipts that are categorised as trading income, as distinct from other types of income.