The Qualifying Care Relief (Specified Social Care Schemes) Order 2011
Citation, commencement and effect1.
(1)
This Order may be cited as the Qualifying Care Relief (Specified Social Care Schemes) Order 2011.
(2)
This Order shall come into force on 4th April 2011.
(3)
This Order shall have effect for the tax year 2010-2011 and subsequent tax years.
Interpretation2.
In this Order—
“looked after child” means a child—
(a)
(c)
“section 806A” means section 806A (meaning of providing shared lives care) of the Income Tax (Trading and Other Income) Act 2005,
“X” is a person who, by reason of age, illness, disability or other vulnerability, is in need of care, and
“Y” is the individual in section 806A(1).
Specified social care schemes: overviewF33.
For the purposes of paragraph (c) of subsection (2) of section 806A, a specified social care scheme means a scheme, service or arrangement that provides—
(a)
adult placement care (article 4),
(b)
kinship care (article 5),
(c)
staying put care (article 6), or
(d)
for a parent and his or her child to live with Y (article 7).
Specified social care schemes for adult placement care4.
(1)
A specified social care scheme in relation to adult placement care must meet Conditions A to C.
(2)
Condition A is that X is placed with Y.
(3)
Condition B is that Y is—
F4(a)
in England, a shared lives carer within the meaning given by the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014,
(b)
(c)
(d)
(4)
(a)
L, or
(b)
subject to paragraph (4A), the relevant social care scheme or the person who carries on the scheme.
F7(4A)
Sub-paragraph (b) of paragraph (4) does not apply if—
(a)
under the relevant social care scheme, the payment made by the scheme or the person who carries on the scheme is made in a fiduciary or representative capacity in relation to X, or
(b)
the relevant social care scheme would permit Y to receive any other payment for providing care to X.
(5)
Specified social care schemes for kinship care5.
(1)
A specified social care scheme in relation to kinship care must meet Conditions A to F.
(2)
Condition A is that X has not yet attained 18 years of age.
(3)
Condition B is that X is a looked after child.
(4)
Condition C is that Y receives payment from L for providing kinship care to X.
(5)
Condition D is that Y is—
(a)
related to X either by blood, marriage or civil partnership, but is not a parent or step-parent of X, or
(b)
known to X and with whom X has a pre-existing relationship.
(6)
Condition E is that Y is regarded by L as a suitable person to care for X.
(7)
Condition F is that, in relation to X, Y is not a person in respect of whom a court has made—
(a)
a residence order, F8...
F9(aa)
(in relation to orders made in England and Wales) a child arrangements order that names Y as a person with whom X is to live, or
(b)
a special guardianship order.
Specified social care schemes for staying put careF106.
(1)
A specified social care scheme in relation to staying put care must meet Conditions A to D.
(2)
Condition A is that X—
(a)
has reached the age of 18 but is under 21, or
(b)
is—
(i)
in further education,
(ii)
in higher education, or
(iii)
pursuing vocational training.
(3)
In Scotland, Condition A is also met where X—
(a)
is over school age but under 19 years, and
(b)
was, at the time when he ceased to be of school age or at any subsequent time, a looked after child.
(4)
Condition B is that, if X is aged 18 years or over, immediately before reaching 18 years X was a looked after child.
(5)
In Scotland, where Condition A is met as described in paragraph (3), Condition B need not be met.
(6)
Condition C is that Y receives payment from L for providing staying put care to X.
(7)
Condition D is that X has a pathway plan.
F11Specified social care schemes providing for a parent and his or her child to live with Y7.
(1)
A specified social care scheme providing for a parent and his or her child to live with Y must meet Conditions A to C in this regulation.
(2)
Condition A is that L has arranged for the parent and child to live with Y.
(3)
Condition B is that Y provides care for the parent and child.
(4)
Condition C is that Y receives payment from L for providing the accommodation and care for the parent and child.
Section 1 of, and Schedule 1 to, the Finance (No. 3) Act 2010 (c. 33) amends the Income Tax (Trading and Other Income) Act 2005 (c. 5) (“ITTOIA”) to extend foster care relief to qualifying shared lives carers.
The new relief is called qualifying care relief, and provides relief from income tax where qualifying care receipts do not exceed the individual’s limit (section 803(2)-(3) ITTOIA). Where qualifying care receipts exceed the individual’s limit, the individual may elect for an alternative method of calculating the income (section 803(4) ITTOIA).
Section 806A (meaning of providing shared lives care) of ITTOIA sets out the conditions which have to be met in order to provide shared lives care for the purposes of qualifying care relief. One of these conditions is that an adult or child has been placed with a carer under a “specified social care scheme” (section 806A(2)(c)).
A “social care scheme” is a scheme, service or arrangement for those who, by reason of age, illness, disability or other vulnerability, are in need of care (section 806A(6)). In this context “care” means personal care, including assistance and support (section 806A(6)).
This Order exercises powers given by section 806A(4) to specify the social care schemes that will meet the condition in section 806A(2)(c).
This Order has effect for the tax year 2010-2011, as permitted by section 806A(5) ITTOIA, and for subsequent tax years.
Article 2 sets out definitions used in this Order.
Article 3 sets out the type of scheme that will qualify for relief.
Article 4 sets out the three conditions which have to be met by adult placement care schemes to satisfy section 806A(2)(c).
Article 5 sets out the six conditions that have to be met by kinship care schemes to satisfy section 806A(2)(c).
Article 6 sets out the four conditions which have to be met by staying put care schemes to satisfy section 806A(2)(c).
A full impact assessment has not been produced for this instrument as it has a negligible impact on the private or voluntary sectors.