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HMRC internal manual

Business Income Manual

Care providers: qualifying guardians

S744 Income Tax (Trading and Other Income) Act 2005

Qualifying guardians are individuals who care for one or more children placed with them under:

  • a special guardianship order, or
  • a residence order,
  • where that individual is not the children’s parent or step parent.

Qualifying guardians are exempt from Income Tax on any qualifying payments they receive as a guardian.

Qualifying payments are payments:

  • by the child’s parents or payments by, or on behalf of, the local authority,
  • to a qualifying guardian, and
  • which are made in relation to a special guardianship order or residence order.