Explanatory note

These Regulations amend section 318C of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”), which deals with the meaning of “qualifying child care” for the purposes of section 318A of ITEPA.

Regulation 2(2) removes wording in subsection (3)(g), which is now superfluous following the insertion of a general definition of foster parent in section 318C in these Regulations.

Regulation 2 also inserts new paragraphs in subsections (4) and (5) of that section. The paragraph inserted into subsection (4) replicates an equivalent provision at regulation 14(2)(b)(iii) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (SI 2002/2005) (“the Entitlement Regulations”) as amended by the Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2009 (S.I. 2009/2887), which come into force on the same day as these Regulations. The paragraphs inserted into subsection (5) replicate provisions at regulation 14(2)(c)(iv) and (v) respectively of the Entitlement Regulations, which set out the categories of qualifying childcare in Northern Ireland.

Regulation 2(5) amends subsection (7)(d) to include a reference to a foster carer and kinship carer in Scotland as well as a foster parent in England, Wales and Northern Ireland.

Lastly, regulation 2 provides a definition of “foster parent” as that term is used in England, Northern Ireland and Wales and “foster carer” and “kinship carer” as those terms are used in Scotland.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.