Finance (No. 2) Act 1979

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.”.