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HMRC internal manual

Repayment Claims Manual

Reviewing claim form: part of minor's income received under Maintenance Order

What to do if a minor receives income under a Maintenance Order or Agreement depends upon

  • the date of the order or agreement

and

  • whether it replaces an earlier order or agreement.Use the following table to decide how much of the gross income to include in the repayment computation.
Situation Action
   
The Maintenance Order or Agreement was made on or after 15 March 1988 and does not replace or vary an earlier order or agreement Exclude the income
  • the payments are exempt from tax in the hands of the minor
  • the payments should be made gross because the payer does not have the right to deduct tax from them.    
      The order was made before 15 March 1988* The payments should be made gross.
The amount chargeable to tax is restricted to the amount chargeable in 1988-89.    
  The agreement was made before 15 March 1988 * The maintenance will be treated as taxable income of the payer.
* Payment will normally be made gross. If tax is deducted do not repay it, but do not express any view as to whether tax should have been deducted. This is a matter for the parties to the agreement.    
  The order replaces or varies an order made  

before 15 March 1988* (or an earlier

replacement or variation of the pre 15 March 1988 order) The payments should be made gross.
The amount chargeable to tax is restricted to the amount chargeable in 1988-89.    
  The order replaces or varies an agreement made before 15 March 1988* The payments should be made gross.
The amount chargeable to tax cannot exceed any amount taxed as the minor’s income in 1988-89.    
  The agreement was made before 15 March 1988 and replaces or varies an order or agreement made before 15 March 1988 Payments by a parent to a minor under an agreement are treated as the parents income for tax purposes.
Do not repay any tax deducted. See RE1233.    
  The agreement was made on or after 14 March 1988 and replaces or varies an order or agreement made before 15 March 1988 See RE1233 and submit the agreement to HMRC Trusts (Edinburgh) for advice.

To determine the gross amount of the minor’s 1988-89 chargeable income, if it is not already agreed, see RE1132,1228 and 1226.