Commentary

E1.703 Foster-care and other qualifying care relief—individual's limit

Personal and employment tax

E1.703 Foster-care and other qualifying care relief—individual's limit

E1.703 Foster-care and other qualifying care relief—individual's limit

As stated in E1.701, where the gross receipts do not exceed the individual's limit, they are simply not charged to tax1. The limit is the amount with which the taxpayer's total qualifying care receipts (see E1.702) are compared to determine which type of relief is due. See E1.701 for the extension of relief to shared lives carers.

Two elements make up the limit. Accordingly, an individual's limit for a tax year is a fixed amount (apportioned between foster carers in a single residence (see below)) and an amount per adult or child, as described below2.

The fixed amount for a tax year is £10,0003, but this is reduced when a residence is used by more than one qualifying carer. Accordingly, if, in the tax year, the residence used to provide the qualifying care is also used for provision of qualifying care by

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