June Budget – CAs for Qualifying Carers
New legislation is to be introduced which will correct technical anomalies in the special capital allowances rules for foster carers.
The new legislation will be drafted to ensure that these rules apply as intended in situations where an individual begins to claim or to qualify for foster-care or qualifying-care relief and has previously claimed capital allowances in respect of their caring activities (which are treated as a trade for tax purposes).
The new legislation will also amend the special rules if an individual’s foster-care or qualifying-care relief ends. In such cases, the ordinary capital allowances rules will start to apply again and the individual will be treated as reacquiring assets at the lower of market value or the unrelieved expenditure in their pool from the last time they were entitled to claim capital allowances.
The changes will be effective from the date the Finance Bill receives Royal Assent.