The measure

Legislation will be introduced to correct current anomalies for foster carers that impact on the availability of capital allowances for certain types of qualifying expenditure. The anomalies arise where foster carers switch to and from being taxed on the basis of their business income, subject to capital allowances under normal rules, and an income tax basis for income over an individual limit for exemption. Allowances are potentially denied after a switch back to a business income basis has taken place. The new legislation will provide for foster carers who have previously claimed capital allowances to be treated as reacquiring their assets at the lower of market value or the unrelieved expenditure in their pool from the last time they were entitled to claim.

Who will be affected?

Foster carers and shared lives carers.

When?

The changes will be effective from the date of the upcoming Finance Bill receiving Royal Assent.