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The Qualifying Care Relief (Specified Social Care Schemes) Order 2011

S.I. 2011/712 · Made 10 March 2011 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 29 March 2018.

Income Tax

Made 10th March 2011

Laid before the House of Commons 11th March 2011

Coming into force 4th April 2011

The Treasury make the following Order in exercise of powers conferred by section 806A(4) and (5) of the Income Tax (Trading and other Income) Act 2005f1.

Annotations to the whole text

Footnotes

f1

2005 c. 5. Section 806A was inserted by Schedule 1 to the Finance (No. 3) Act 2010 (c. 33).

Contents

  1. 1Citation, commencement and effect
  2. 2Interpretation
  3. 3Specified social care schemes: overview
  4. 4Specified social care schemes for adult placement care
  5. 5Specified social care schemes for kinship care
  6. 6Specified social care schemes for staying put care
  7. 7Specified social care schemes providing for a parent and his or her child to live with Y
  8. Signature
  9. Explanatory note

1Citation, commencement and effectI1

(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.

2InterpretationI1

In this Order—

  • “L” is a local authority or a health service body within section 986 (meaning of “health service body”) of the Corporation Tax Act 2010f1.

  • “looked after child” means a child—

    1. (a)

      in England and Wales, to whom section 22C (ways in which looked after children are to be accommodated and maintained) of the Children Act 1989f2 applies,

    2. (b)

      F1in Scotland, to whom section 17(6) of the Children (Scotland) Act 1995 applies, and

    3. (c)

      in Northern Ireland, to whom Article 27(2) (accommodation and maintenance for children) of the Children (Northern Ireland) Order 1995f3 applies.

  • F2 “school age” has the meaning given in section 31 of the Education (Scotland) Act 1980f4,

  • “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).

3Specified social care schemes: overviewF1I1

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).

4Specified social care schemes for adult placement careI1

(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—

F1(a)

in England, a shared lives carer within the meaning given by the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014,

(b)

in Wales, an adult placement carer within the meaning of the Adult Placement Schemes (Wales) Regulations 2004f1,

(c)

in Scotland, a person with whom X has been accommodated by an adult placement service within the meaning of section 47(1)(j) of the Public Services Reform (Scotland) Act 2010 f2, or

(d)

in Northern Ireland, an adult placement carer within the meaning of the Adult Placement Agencies Regulations (Northern Ireland) 2007f3.

(4)

Condition C is that Y receives payment F2... for providing adult placement care to X F3from—

(a)

L, or

(b)

subject to paragraph (4A), the relevant social care scheme or the person who carries on the scheme.

F4(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)

Until the coming into force of section 47(1)(j) of the Public Services Reform (Scotland) Act 2010, the reference to that provision in sub-paragraph (c) of paragraph 3 is to section 2(16) of the Regulation of Care (Scotland) Act 2001f4.

5Specified social care schemes for kinship careI1

(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, F1...

F2(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.

6Specified social care schemes for staying put careF1I1

(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.

7Specified social care schemes providing for a parent and his or her child to live with YF1

(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.

Signature

Michael Fabricant

Angela Watkinson

Two of the Lords Commissioners to Her Majesty’s Treasury

10th March 2011

Explanatory note

(This note is not part of the Order)

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.