June Budget – Shared Lives Carers
A new income tax relief which was previously announced as part of the 2009 Pre-Budget Report
is to be introduced for qualifying shared lives carers.
A shared lives carer is someone who:
- provide accommodation, care and support for up to three individuals who have been placed with them under a local authority Shared Lives placement scheme; and
- shares their home and family life with the individuals placed with them under the Shared Lives scheme.
The income tax relief will be in the form of a new tax free allowance which will be effective from 6 April 2010. For the tax year 2010-11 only, shared lives carers can choose between the current simplified arrangements for adult placement carers and the new tax free allowance. The simplified arrangements will then be withdrawn from 2011-12.
The tax free allowance applies to income obtained relating to being a shared lives carer (per household) and will be made up of the following:
- £10,000 fixed amount per tax year;
- £200 per week (or part week), per placement aged under 11; and
- £250 per week (or part week), per placement aged 11 or over
The reliefs are based on existing foster care relief legislation and there will be special rules for individuals who fall under both categories.