Withdrawal of existing tax exemptions
I163Restrictions on claiming tax exemption for childcare vouchers
1
Section 270A of ITEPA 2003 (limited exemption from income tax for qualifying childcare vouchers) is amended as follows.
2
In subsection (1)—
a
before “employee” insert “
eligible
”
, and
b
at the end insert—
For the meaning of “eligible employee”, see section 270AA.
3
In subsection (5)(a), before “employees” insert “
eligible
”
.
4
After section 270A of ITEPA 2003 insert—
270AAMeaning of “eligible employee”
1
An employee is an eligible employee for the purposes of section 270A if conditions A to C are met in relation to the employee.
2
Condition A is that the employee—
a
was employed by the employer immediately before the relevant day, and
b
has not ceased to be employed by the employer on or after that day.
3
“The relevant day” means the day specified by the Treasury in regulations for the purposes of this section.
4
Condition B is that there has not been a period of 52 tax weeks ending on or after the relevant day which has not included at least one qualifying week.
5
In subsection (4)—
“qualifying week” means a tax week in respect of which a qualifying childcare voucher has been provided for the employee under the scheme by the employer in respect of a child, and
“tax week” has the meaning given by section 270A(7).
6
Condition C is that the employee has not given the employer a childcare account notice.
7
A “childcare account notice” is a written notice informing the employer that the employee wishes to leave the scheme in order to be able to open a childcare account under section 17 of the Childcare Payments Act 2014 or enable the employee's partner to do so.
8
In subsection (7) “partner” is to be read in accordance with regulations made under section 3(5) of that Act.
5
In section 717 of ITEPA 2003 (orders and regulations), in subsection (4), after “employments),” insert “
section 270AA(3) (exemption from income tax for qualifying childcare vouchers: meaning of “eligible employee”),
”
.