Income Tax (Trading and Other Income) Act 2005

744 Payments to adopters[F1 , etc]: England and Wales U.K.

[F2 (1)] No liability to income tax arises in respect of the following payments—

(a) any payment or reward falling within section 57(3) of the Adoption Act 1976 (c. 36) (payments authorised by the court) which is made to a person who has adopted or intends to adopt a child,

(b) payments under section 57(3A)(a) of that Act (payments by adoption agencies of legal or medical expenses of persons seeking to adopt),

(c) payments of allowances under regulations under section 57A of that Act (permitted allowances to persons who have adopted or intend to adopt children),

(d) payments of financial support made in the course of providing adoption support services within the meaning of the Adoption and Children Act 2002 (c. 38) (see section 2(6) and (7) of that Act), F3 ...

(e) payments made under regulations under paragraph 3(1) of Schedule 4 to that Act (transitional and transitory provisions: adoption support services),

[F4 (f) payments made under regulations under section 14F of the Children Act 1989 (special guardianship support services) to a person appointed as a child's special guardian,

(g) payments made to a person under section 17 of that Act (provision of services for children in need, their families and others) by reason of that person being a person [F5 named in a child arrangements order as a person with whom a child is to live],

(h) payments made to a person, in respect of a child, under paragraph 15 of Schedule 1 to that Act (local authority contribution to child's maintenance to recipients [F6 with whom child is living, or is to live, as a result of a child arrangements order]), and

(i) payments made in accordance with—

(i) an order under that Schedule (orders for financial relief against parents etc), or

(ii) a maintenance agreement,

for the benefit of a child, to a person appointed as the child's special guardian or a person [F7 named in a child arrangements order as a person with whom the child is to live].]

[F8 (2) But a payment is not within subsection (1)(f), (g), (h) or (i) if—

(a) it is made to an excluded relative of the child,

(b) it is made to a person appointed as the child's special guardian and an excluded relative is also appointed as the child's special guardian, or

[F9 (c) it is made to a person (“P”) named in a child arrangements order as a person with whom the child is to live and an excluded relative who lives in the same household as P is also named in that order as a person with whom the child is to live.]

(3) In this section—

• “excluded relative”, in relation to a child, means—

  (a)

  a parent of the child, or

  (b)

  a person who is, or has been, the husband or wife or civil partner of a parent of the child;

• “maintenance agreement” has the meaning given by paragraph 10(1) of Schedule 1 to the Children Act 1989;

• “[F10 child arrangements]” has the meaning given by section 8 of that Act.]

Textual Amendments

F1 Word in s. 744 heading inserted (16.12.2010) (with effect in accordance with s. 2(5) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 2(2)(d)

F2 S. 744(1) renumbered (16.12.2010) (with effect in accordance with s. 2(5) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 2(2)(a)

F3 Word in s. 744(1) omitted (16.12.2010) (with effect in accordance with s. 2(5) of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), s. 2(2)(b)

F4 S. 744(1)(f)-(i) inserted (16.12.2010) (with effect in accordance with s. 2(5) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 2(2)(b)

F5 Words in s. 744(1)(g) substituted (22.4.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 2 para. 68(2); S.I. 2014/889, art. 4(f) (with transitional provisions in S.I. 2014/1042, arts. 3, 4, 6-10)

F6 Words in s. 744(1)(h) substituted (22.4.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 2 para. 68(3); S.I. 2014/889, art. 4(f) (with transitional provisions in S.I. 2014/1042, arts. 3, 4, 6-10)

F7 Words in s. 744(1)(i) substituted (22.4.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 2 para. 68(4); S.I. 2014/889, art. 4(f) (with transitional provisions in S.I. 2014/1042, arts. 3, 4, 6-10)

F8 S. 744(2)(3) inserted (16.12.2010) (with effect in accordance with s. 2(5) of the amending Act) by Finance (No. 3) Act 2010 (c. 33), s. 2(2)(c)

F9 S. 744(2)(c) substituted (22.4.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 2 para. 68(5); S.I. 2014/889, art. 4(f) (with transitional provisions in S.I. 2014/1042, arts. 3, 4, 6-10)

F10 Words in s. 744(3) substituted (22.4.2014) by Children and Families Act 2014 (c. 6), s. 139(6), Sch. 2 para. 68(6); S.I. 2014/889, art. 4(f) (with transitional provisions in S.I. 2014/1042, arts. 3, 4, 6-10)