Special guardianship orders and residence orders
Certain payments made to 'qualifying carers' who effectively take on legal parental responsibility will be exempt from income tax.
Payments attracting relief are:
- Those made by the child's parents or by, or on behalf of, the local authority;
- To a qualifying carer.
Who will be affected?
'Qualifying carers' are individuals who care for one or more children placed with them under:
- a special guardianship order; or
- a residence order, where the individual is not the child's parent or step-parent.
The measure will take effect for payments received from 6 April 2010.
The exemption from income tax for certain payments to these individuals is a recognition of the important social role these carers have.