Income Tax (Trading and Other Income) Act 2005 section 814

Full qualifying care relief: income chargeable under Chapter 8 of Part 5

Section 814 provides full qualifying care relief where an individual's care income does not arise from a trade and would otherwise be taxable as miscellaneous income.

• The section applies where qualifying care receipts would otherwise be taxable as miscellaneous income (income not otherwise charged to tax)
• For each care arrangement, the income received less any associated expenses is treated as nil — effectively eliminating any tax charge
• The relief is limited to qualifying care income and its associated expenses, so it does not affect other sources of income
• This is the "full" form of the relief, meaning the entire net income from each qualifying care arrangement is reduced to zero