Where the account-holder makes a withdrawal from a childcare account, the account provider must pay the corresponding top-up amount to HMRC from the childcare account.

The “corresponding top-up amount”, in relation to a withdrawal, is R% of the amount of the withdrawal, where R is the percentage for the time being specified in section 1(4).

Accordingly, the maximum amount that may be withdrawn from a childcare account at any time is the relevant percentage of the total amount of funds held in the account at that time.

The “relevant percentage” is the percentage given by—

$\genfrac{}{}{0.1ex}{}{100}{100+\mathrm{R}}\times 100$

where R is the percentage for the time being specified in section 1(4).

A withdrawal may not be made from a childcare account at any time when a top-up payment is payable into the account.