The Income Tax (Indexation of Qualifying Care Relief Amounts) Order 2026

Statutory Instruments

2026 No. 39

INCOME TAX

The Income Tax (Indexation of Qualifying Care Relief Amounts) Order 2026

Made

20th January 2026

The Treasury make this Order in discharge of the duty imposed by section 828A(4) of the Income Tax (Trading and Other Income) Act 2005(1).

Citation and effect

1.—(1) This Order may be cited as the Income Tax (Indexation of Qualifying Care Relief Amounts) Order 2026.

(2) This Order has effect for the tax year 2026-27 and subsequent tax years.

Indexation of qualifying care relief amounts

2.  The Income Tax (Trading and Other Income) Act 2005(2) is amended as follows—

(a) in section 808(2) (the individual’s limit: the fixed amount) for “£19,690” substitute “£20,440”;

(b) in section 811(1A)(3) (the weekly amount for an adult) for “£495” substitute “£515”;

(c) in section 811(2)(a) (the weekly amount for a child under 11 years old) for “£415” substitute “£435”;

(d) in section 811(2)(b) (the weekly amount for an older child) for “£495” substitute “£515”.

Gen Kitchen

Taiwo Owatemi

Two of the Lords Commissioners of His Majesty's Treasury

20th January 2026

Explanatory Note

(This note is not part of the Order)

This Order fulfils the indexation requirements in section 828A (indexation of the fixed amount and the amount per adult and child) of the Income Tax (Trading and Other Income) Act 2005 (c. 5) in respect of qualifying care relief amounts, which are increased by reference to the consumer price index. This increase has effect for the tax year 2026-27 and subsequent tax years.

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to a previously announced policy and relates to routine changes to thresholds to a predetermined indexation formula.

(1)

2005 c. 5; section 828A was inserted by section 28(4) Finance (No. 2) Act 2023 (c. 30).

(2)

The amounts in the sections amended by this Order were last substituted by S.I. 2025/51.

(3)

Section 811(1A) was inserted by paragraph 12(2) of Schedule 1 to the Finance (No. 3) Act 2010 (c. 33).