Explanatory note

These Regulations amend section 318C of the Income Tax (Earnings and Pensions) Act 2003 (c. 1), which deals with the meaning of “qualifying child care” for the purposes of exemptions from income tax for employee benefits in respect of certain employer-provided or employer-contracted child care.

Regulation 2(2) amends subsection (2)(f) which referred to care provided for a child in England by a domiciliary care worker under the Domiciliary Care Agencies Regulations 2002 (S.I. 2002/3214). Those Regulations were revoked by paragraph 1 of Schedule 2 to the Health and Social Care Act 2008 (Commencement No. 16, Transitory and Transitional Provisions) Order 2010 (S.I. 2010/807).

The regulatory system for domiciliary care in England is now established through the Health and Social Care Act 2008 (c. 14) and the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 (S.I. 2014/2936) (the “2014 Regulations”). Regulation 2(2) amends subsection (2) so that the definition of “qualifying child care” in England includes care provided for a child by a carer supplied by a person registered as a service provider under Chapter 2 of Part 1 of the Health and Social Care Act 2008 in relation to the regulated activity of personal care within paragraph 1 of Schedule 1 to the 2014 Regulations.

Regulation 2(3) amends subsection (6) to provide the conditions for registered or approved overseas childcare. This amendment brings the income tax provisions for “qualifying child care” provided for a child outside the United Kingdom into line with the corresponding provisions for the child care element of working tax credit contained in regulation 14(2)(d)(i) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005).

A Tax Information and Impact Note has not been prepared for this Instrument as it contains no substantive changes to tax policy.