Explanatory note

These Regulations amend sections 318(5) and 318C of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA 2003”) which provide for exemptions from income tax for employee benefits in respect of certain employer-provided or employer-contracted child care.

Regulation 2 amends section 318(5) of ITEPA 2003. The reference to Part 10A of the Children Act 1989 is repealed because there is no longer any child care provided in England for a child by persons registered under Part 10A of that Act.

Regulation 3 makes amendments to section 318C of ITEPA 2003.

Regulation 3(2) amends subsection (2). Paragraph (a) is repealed because there is no longer any child care provided in England for a child by persons registered under Part 10A of the Children Act 1989. Paragraph (ea) is repealed because the Tax Credits (Approval of Child Care Providers) Scheme 2005 (S.I. 2005/93) was revoked with transitional protection on 1st October 2007 by the Tax Credits (Child Care Providers) (Miscellaneous Revocation and Transitional Provisions) (England) Scheme 2007 (S.I. 2007/2481). Paragraph (g) is repealed because, for the purposes of qualifying child care, a foster parent who provides child care (other than for a child whom he or she fosters) must register under Part 3 of the Childcare Act 2006 (c. 21). Consequential amendments are also made to this subsection because of the amendments made.

Regulation 3(3) repeals words in subsection (3). The insertion of new section 318C(7)(d) makes those words redundant.

Regulation 3(4) amends subsection (7), which excludes certain descriptions of care from the definition of “qualifying child care”. The reference in subsection (7)(c) to paragraph (ea) of subsection (2) is omitted because that paragraph is repealed by these regulations. A new paragraph (d) is inserted in subsection (7) which expressly excludes child care provided by a foster parent in respect of a child whom that foster parent is fostering. Consequential amendments are also made to this subsection because of the amendments made.

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