Qualifying care relief allows carers, who look after children or young people placed with them by a local authority, a fostering service or a voluntary organisation, to keep simple tax records. The tax simplification scheme enables those providing care under Shared Lives schemes to claim a standard relief instead of deductions for their actual expenses.
Shared Lives carers are usually paid, perhaps by a local authority, to support someone living with them, but some people fund their care from their own finances.
Carers, who have previously been excluded from qualifying care relief, because the person they are looking after happens to self-fund their care, will now be eligible to use the tax simplification scheme. The person funding the care does not pay the carer directly, but through an approved Shared Lives scheme instead, to prevent abuse and to ensure fairness.
The Government believes 170 such carers will be affected initially.