Income and Corporation Taxes Act 1988

Change of circumstances U.K.

8 (1) For the purposes of this paragraph a change of circumstances occurs in relation to a child in a year of assessment if a relevant event takes place in that year and—

(a) as a result of the event the child becomes a qualifying child in relation to any person or stops being a qualifying child in relation to any person, or

(b) the child is, immediately before the event, a qualifying child in relation to both parties to the event.

(2) The following are relevant events—

(a) a marriage or a man and a woman starting to live together as husband and wife;

(b) a separation.

(3) A separation occurs when—

(a) a husband and wife cease to live together, or

(b) a man and a woman cease to live together as husband and wife, having been living together as husband and wife without being married.

(4) In a year of assessment in which a change of circumstances (or more than one) occurs in relation to a child, section 257AA [F1 (except subsection (4A))] and paragraphs 2 to 7 above shall apply in relation to the child’s residence as if each of the following were a separate year of assessment—

(a) the period ending with the day before the first (or only) change of circumstances,

(b) the period starting with the day of the last (or only) change of circumstances, and

(c) any period starting with the day of one change of circumstances and ending with the day before the next.

(5) For the purposes of sub-paragraph (4) above the amount specified in section 257AA(2) (before any reduction or substitution) shall be taken to be the result of the following formula—

[F2 (5A) If the child is a qualifying baby the references in sub-paragraph (5) above to the amount specified in section 257AA(2) are to the higher amount applicable by virtue of subsection (2A) of that section.]

(6) In applying sub-paragraph (4) above a reference in section 257AA or this Schedule to a person’s income for the year shall be taken as a reference to his income for the year and not his income for the period.

Textual Amendments

F1 Words in Sch. 13B para. 8(4) inserted (with effect in accordance with s. 53(6) of the amending Act) by Finance Act 2001 (c. 9), Sch. 11 para. 6(2)

F2 Sch. 13B para. 8(5A) inserted (with effect in accordance with s. 53(6) of the amending Act) by Finance Act 2001 (c. 9), Sch. 11 para. 6(3)