Income Tax – Shared Lives Carers
HMRC have published a draft statutory instrument on the new income tax relief which is expected to be introduced for qualifying shared lives carers. The Government’s aim is to bring into line the tax treatment of carers who, like foster carers, share their homes and daily family life with an adult or child placed with them by a local authority.
For a carer to be eligible for the new relief an adult or child must be placed with a carer under a specified social care scheme. The draft statutory instrument defines specified social care schemes in England, Wales, Scotland and Northern Ireland.
Any comments on the draft legislation should be sent by 31 January 2011 to HMRC.