Part 4Employment income: exemptions

Chapter 11Miscellaneous exemptions

Childcare

318Care for children

1

No liability to income tax arises by virtue of Chapter 10 of Part 3 (taxable benefits: residual liability to charge) in respect of the provision for an employee of care for a child if conditions A to C are met.

2

If those conditions are met only as respects part of the provision, no such liability arises in respect of that part.

3

Condition A is that the child is under 18 and—

a

is a child of the employee maintained at the employee’s expense,

b

is resident with the employee, or

c

is a child in respect of whom the employee has all the rights, duties, powers, responsibilities and authority which by law a parent of a child has in relation to the child and the child’s property.

In paragraph (a) “child” includes stepchild.

4

Condition B is that—

a

the premises on which the care is provided are not used wholly or mainly as a private dwelling, and

b

any applicable registration requirement is met with respect to the premises.

5

In subsection (4), “registration requirement” means a requirement that a person providing the care is registered under—

a

section 71 or Part 10A of the Children Act 1989 (c. 41), or

b

Article 118 of the Children (Northern Ireland) Order 1995 (S.I.1995/755 (N.I. 2)),

with respect to premises.

6

Condition C is that—

a

the premises on which the care is provided are made available by the employer alone, or

b

the care requirements are met.

7

The care requirements are that—

a

the care is provided under arrangements made by persons who include the employer,

b

the premises on which it is provided are made available by one or more of those persons, and

c

under the arrangements the employer is wholly or partly responsible for financing and managing the provision of the care.

8

In this section “care” means—

a

any form of care, and

b

any form of supervised activity which is not provided primarily for education purposes.