Income Tax (Trading and Other Income) Act 2005 section 815

Alternative calculation of profits: introduction

Section 815 introduces the alternative method of calculating profits under the qualifying care relief provisions, which applies when a carer's qualifying care receipts exceed their annual limit.

• The alternative calculation method is available where an individual qualifies for qualifying care relief but their total qualifying care receipts exceed their personal limit for the tax year
• Unlike the full form of relief, the alternative calculation method only applies if the individual makes an election to use it
• The alternative calculation method does not apply where the special rules for traders with accounting dates other than 5 April are in play (sections 822 and 823)
• The detailed rules for the alternative profit calculation are set out in sections 816 and 817, with the election process covered by sections 818 and 819