View more on these topics

Foster carers

From 6 April 2003 a new tax relief for individuals who provide foster care services to local authorities, either directly or through an agency, will be available.

The relief will consist of two elements:

  • foster carers whose gross receipts from foster care do not exceed an individual limit in a year will be exempt from tax on their income from foster care; and
  • foster carers whose gross receipts from foster care exceed the individual limit, will be able to choose an optional, simplified, method of calculating their profits instead of using the normal rules.

At present foster carers are taxed on any profit they make under Case I, II or VI of Schedule D. Under a longstanding administrative arrangement, foster carers are normally treated by the Inland Revenue as having a profit only if they receive payments which their local authority identifies as “reward”.

Under the new relief, any such foster carer receiving gross receipts from foster care in a year under an individual limit will be exempt. “Exempt” means that the individual will be treated as having a profit or loss from foster care of “nil”.

The exemption will apply solely to income obtained from the provision of foster care.

Foster carers whose gross receipts in a year from the provision of foster care exceeds their individual limit will be able to choose between:

  • computing their business profits using the normal rules; or
  • treating as their profit the amount by which their gross receipts from foster care exceed their individual limit.

The individual limit will be made up of two elements:

  • a fixed amount per residence of £10,000 for a full year; and
  • an additional amount per child for each week, or part week, that the individual provides foster care. The amounts will be £200 a week for a child aged under eleven and £250 a week for a child aged eleven or older.


  • The threshold for tax exempt rents under the Rent a Room scheme for tax year 2003/2004 remains at £4,250.


The starting rate of 10% will apply to the first £1,960 of taxable income.


Forsyth explores fixed interest hedge funds

FORSYTH PARTNERS FORSYTH ALTERNATIVE INCOME FUND Type: Hedge fund of funds Aim: Income and growth by investing in fixed interest hedge funds, sovereign, corporate and emerging market bond funds Minimum investment: Lump sum $20,000 Place of registration: Cayman Islands Investment split: 100% in fixed interest hedge funds, sovereign, corporate and emerging market bond funds Charges: […]

Equitable shows signs of life

One of the great ironies of the market turbulence is that Equitable Life is now outperforming other life funds following its switch out of equities and into bonds at the beginning of 2002.Chairman Vanni Treves, says Equitable is stabilising and out of intensive care although it still has some way to go.Equitable says it has […]

Employment law warning to IFAs

Nearly half of IFAs are risking litigation and their businesses by not complying with employment law, according to a survey by law firm Peninsula. The survey showed that 53 per cent of IFAs surveyed were taking short cuts and only 34 per cent were aware of new employment legislation.

Out of context

•”It&#39s like being on a shoot without many birds.” – Artemis product and communications director Nick Wells on the climax to the Isa season•”Of course it&#39s a lodge – have you ever seen an air-conditioned shed before?” – Syndaxi Financial Planning&#39s Robert Reid on his back-garden office.•”One IFA told me I don&#39t look nearly as […]

How to balance bottom-up with top-down research in constructing multi-asset credit portfolios

In this short video, Azhar Hussain, head of global high yield at Royal London Asset Management, explains how his team balance bottom-up with top-down research in constructing multi-asset credit portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm