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.