Section 11.
1Section 13 of the Taxes Act shall cease to have effect.
2(1)Section 14 of the Taxes Act shall be amended as follows.
(2)In subsection (2) after the words "Subject to subsections (3) and (4) below " there shall be inserted the words " and to section 14A below " and for paragraphs (a) and (b) there shall be substituted the words " that a qualifying child is resident with him for the whole or part of the year, ".
(3)For subsection (3) there shall be substituted—
“(3)A claimant is entitled to only one deduction under subsection (2) above for any year of assessment irrespective of the number of qualifying children resident with him in that year.”
(4)After subsection (4) there shall be added—
“(5)For the purposes of this section a qualifying child means, in relation to any claimant and year of assessment, a child who—
(a)is born in, or is under the age of sixteen years at the commencement of, the year or, being over that age at the commencement of that year, is receiving full-time instruction at any university, college, school or other educational establishment; and
(b)is a child of the claimant or, not being such a child, is born in, or is under the age of eighteen years at the commencement of, the year and maintained for the whole or part of that year by the claimant at his own expense.
(6)In subsection (5)(a) above the reference to a child receiving full-time instruction at an educational establishment includes a reference to a child undergoing training by any person (" the employer ") for any trade, profession or vocation in such circumstances that the child is required to devote the whole of his time to the training for a period of not less than two years.
For the purpose of a claim in connection with a child undergoing training, the inspector may require the employer to furnish particulars with respect to the training of the child in such form as may be prescribed by the Board.
(7)If any question arises under this section whether a child is receiving full-time instruction at an educational establishment, the Board may consult the Secretary of State for Education and Science.
In the application of this subsection to Scotland and Northern Ireland, the Secretary of State and the Department of Education for Northern Ireland shall respectively be substituted for the Secretary of State for Education and Science.
(8)In subsection (5)(b) above the reference to a child of the claimant includes a reference to a stepchild of his, an illegitimate child of his if he has married the other parent after the child's birth and an adopted child of his if the child was under the age of eighteen years when he was adopted.
(9)Notwithstanding anything in section 9 of the Family Law Reform Act 1969 or any corresponding enactment in force in Northern Ireland or any rule of law in Scotland, for the purposes of subsection (5) above a child whose birthday falls on 6th April shall be taken to be over the age of sixteen at the commencement of the year which begins with his sixteenth birthday and over the age of eighteen at the commencement of the year which begins with his eighteenth birthday.”.
3After section 14 of the Taxes Act there shall be inserted the following section—
(1)Where for any year of assessment two or more individuals are entitled to relief under section 14 above in connection with the same child—
(a)the amount specified in subsection (2) of that section shall be apportioned between them ; and
(b)the deduction to which each of them is entitled under that section shall, subject to subsection (2) below, be equal to so much of that amount as is apportioned to him.
(2)Where for any year of assessment amounts are apportioned to an individual under this section in respect of two or more children the deduction to which he is entitled for that year under section 14 above shall be equal to the sum of those amounts or the amount specified in subsection (2) of that section, whichever is the less.
(3)Any amount required to be apportioned under this section shall be apportioned between the individuals concerned in such proportions as may be agreed between them or, in default of agreement, in proportion to the length of the periods for which the child in question is resident with them respectively in the year of assessment ; and where the proportions are not so agreed, the apportionment shall be made by such body of General Commissioners, being the General Commissioners for a division in which one of the individuals resides, as the Board may direct, or, if none of the individuals resides in Great Britain, by the Special Commissioners.
(4)Where a claim is made under section 14 above and it appears that, if the claim is allowed, an apportionment will be necessary under this section, the Board may if they think fit direct that the claim itself shall be dealt with by any specified body of Commissioners which could under this section be directed to make the apportionment and that the same Commissioners shall also make any apportionment which proves to be necessary; and where a direction is given under this subsection no other body of Commissioners shall have jurisdiction to determine the claim.
(5)The Commissioners making any apportionment under this section shall hear and determine the case in like manner as an appeal, but any individual who is, or but for the provisions of this section would be, entitled to relief in connection with the child shall be entitled to appear and be heard by the Commissioners or to make representations to them in writing.
(6)For the purposes of this section an individual shall not be regarded as entitled to relief under section 14 above for any year of assessment in connection with the same child as another individual if there is another child in connection with which he, and he alone, is entitled to relief under that section for that year.”
4(1)In section 219(1)(a) of the Taxes Act the word " and " shall be omitted and at the end there shall be inserted the words " , child's special allowance and guardian's allowance and except so much of any benefit as is attributable to an increase in respect of a child. "
(2)In section 219(2) of the Taxes Act for the words " and payments of child benefit" there shall be substituted the words " , payments of child benefit, payments by way of an allowance under section 70 of the Social Security Act 1975 or section 70 of the Social Security (Northern Ireland) Act 1975 and payments excepted by subsection (1) above from the charge to tax imposed by that subsection ".