Glossary · UK
What is Foster Carer Tax Exemption (Qualifying Care Relief)?
A tax relief that lets most foster carers receive fostering income tax-free.
Full Definition
Qualifying Care Relief lets foster carers, shared lives carers and some other approved carers receive a fixed tax-free amount each year, made up of a flat exemption per household plus a weekly amount per child or adult cared for (with a higher weekly amount for children under 11). Income above the exempt amount can be taxed either on the excess itself or using a simplified profit method based on the number of placements, whichever the carer chooses, meaning many foster carers pay little or no Income Tax on their fostering income.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.