Income Tax (Trading and Other Income) Act 2005 section 824

Capital allowances: introduction

Section 824 introduces the key definitions and terminology used in the group of sections (824 to 827) that deal with how capital allowances interact with qualifying care relief (foster-care relief).

• An individual is a "relevant individual" in a tax year if either full qualifying care relief or the alternative method of calculating profits applies to their trading income for that year.
• A "relevant chargeable period" is a chargeable period that corresponds to the income period for the individual's qualifying care receipts in the tax year for which they are a relevant individual.
• Key terms are defined, including "the care business" (the individual's provision of qualifying care), "care business expenditure" (spending on plant or machinery for the care business), "care business pool" (a pool of such expenditure, even if the balance is nil), and "another activity" (any other qualifying activity the individual carries on).
• Any terms used in both this group of sections and the Capital Allowances Act 2001 that are not separately defined in this Chapter carry the same meaning as in that Act.