Special guardianship orders and residence orders
The measure
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.
When?
The measure will take effect for payments received from 6 April 2010.
Our view
The exemption from income tax for certain payments to these individuals is a recognition of the important social role these carers have.
