Income Tax (Trading and Other Income) Act 2005 section 822

Full relief

Section 822 provides full foster care relief where the individual's accounting date is not 5 April, by treating the trade profits or losses as nil when total qualifying care receipts fall within the relevant limit.

• This section applies where the individual uses an accounting date other than 5 April
• It compares the individual's total qualifying care receipts for the period of account against their relevant limit for that period
• If receipts do not exceed the relevant limit, the profits or losses of the foster care trade for the tax year are treated as nil
• This delivers the same outcome as the full relief provisions that apply in standard cases, but adapted for non-standard accounting periods