Part 7U.K.Income charged under this Act: rent-a-room and [F1qualifying care] relief

Chapter 2U.K.[F2qualifying care relief]

Alternative calculation of profits if amount exceeds limitU.K.

(a)an individual qualifies for [F3qualifying care] relief for a tax year,

(b)the individual's total [F4qualifying care] receipts for the tax year exceed the individual's limit for the tax year,

(c)sections 822 and 823 do not apply (accounting date for trade not 5th April), and

(d)an election by the individual has effect to apply the alternative method of calculating profits for the tax year (see sections 818 and 819).

(1)This section applies if the individual's [F5qualifying care] receipts for the tax year are the receipts of a trade.

(2)The profits of the trade for the tax year are—

(a)the individual's total [F6qualifying care] receipts for the tax year, less

(b)the individual's limit for the tax year.

(1)This section applies if the individual has [F7qualifying care] receipts for the tax year which are chargeable to income tax under Chapter 8 of Part 5 (income not otherwise charged).

(2)The amount charged for the tax year arising from all the arrangements from which the receipts are derived is—

(a)the individual's total [F8qualifying care] receipts for the tax year, less

(b)the individual's limit for the year.

(a)the individual qualifies for [F9qualifying care] relief for a tax year,

(b)the individual's total [F10qualifying care] receipts for the tax year exceed the individual's limit for the tax year, and

(c)sections 822 and 823 do not apply (accounting date for trade not 5th April).

(2)An election under this section—

(a)must specify the tax year for which it is made, and

(b)has effect for that year (unless withdrawn by notice given by the individual).

(3)An election or notice of withdrawal under this section must be made or given to the Inland Revenue on or before—

(a)the first anniversary of the normal self-assessment filing date for the tax year for which the election is made, or

(b)such later date as the Inland Revenue may, in a particular case, allow.

(b)an adjustment is made after that date to the profits from the individual's provision of [F11qualifying care] on which the individual is liable to tax for the tax year.

(2)The individual may make an election under this section to apply the alternative method of calculating profits given in sections 816 and 817 for the tax year.

(3)The election—

(a)must specify that tax year, and

(b)has effect for that tax year (unless withdrawn by notice given by the individual).

(4)An election or notice of withdrawal under this section must be made or given to the Inland Revenue on or before—

(a)the first anniversary of the normal self-assessment filing date for the tax year in which the adjustment is made, or

(b)such later date as the Inland Revenue may, in a particular case, allow.