Income Tax (Trading and Other Income) Act 2005 section 823

Alternative method of calculating profits

Section 823 provides an alternative way of calculating foster care trading profits where the individual's accounting date is not 5 April and their total qualifying care receipts exceed their relevant limit for the period of account.

• This section applies where an individual's total qualifying care receipts for a period of account exceed their relevant limit and the individual elects to use this alternative method
• The taxable profit is simply the total qualifying care receipts minus the relevant limit — actual expenses are ignored
• This achieves the same effect for non-5 April accounting dates as sections 815 and 816 achieve for standard cases
• The election and assessment adjustment rules in sections 818 and 819 apply equally to elections made under this section