192BA Exemption of certain payments made or authorised by Child and Family Agency

Summary

This section exempts from income tax, payments made or authorised by the Child and Family Agency (i.e. Tusla) to carers, foster parents, relatives and young person’s transitioning from care to whom such payments are made.

Details

This section deletes section 192B and inserts a new section 192BA into the Taxes Consolidation Act 1997 with the following provisions:

(1) Subsection (1) contains the following definitions:

“carer”, in relation to an individual, means a person who is or was a foster parent or relative of the individual or who takes care of the individual on behalf of the Child and Family Agency or the Health Service Executive;

“foster parent” has the meaning assigned to it in the Child Care (Placement of Children in Foster Care) Regulations 1995 (S.I. No. 260 of 1995);

“Minister” means the Minister for Children and Youth Affairs;

“Qualifying payment” means a payment

1. which either –
1. is
   1. described in column (1) of the Table to this section,
   2. paid on a basis specified in column (2) of that Table, and
   3. made or authorised by the Child and Family Agency on behalf of the Minister,
   or
2. is made by or on behalf of the Health Service Executive to a carer in respect of what is generally referred to and commonly known as a Home Sharing Host Allowance.
   or
2. Made in accordance with the law of any other Member State and which corresponds to a payment referred to in paragraph (a);

Reference is made in the above definition of “qualifying payment” to a Table, in which Column 1 provides a description of the payment being exempted and Column 2 specifies the basis under which the payment is made.

“qualifying person” means a carer, foster parent, relative or any other individual to whom a qualifying payment is made;

“relative” has the meaning assigned to it in the Child Care (Placement of Children with Relatives) Regulations 1995 (S.I No. 261 of 1995).

(2) Subsection (2) provides that payments

1. listed in Column (1) of the Table, paid on the basis outlined in Column (2), or
2. made by or on behalf of the Health Service Executive to a carer in respect of what is generally referred to and commonly known as a Home Sharing Host Allowance,

on or after 1 January 2020 shall be exempt from income tax in the hands of the carer, foster parent, relative, and any other person to whom the payment is made, including the young person transitioning from care.

(3) Subsection (3) provides that payments

1. listed in Column (1) of the Table, paid on the basis outlined in Column (2), or
2. made by or on behalf of the Health Service Executive to a carer in respect of what is generally referred to and commonly known as a Home Sharing Host Allowance,

before 1 January 2020 will be treated as if they were exempt from income tax in the hands of the carer, foster parent, relative, and any other person to whom the payment is made, including the young person transitioning from care.

Section 13(2) of Finance Act 2019 amended Section 192BA(1) of the Taxes Consolidation Act to include the United Kingdom in paragraph (b) of the definition of “qualifying payment” in respect of the definition for Member State, subject to Ministerial Order, on such day as the Minister for Finance may appoint.

The Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 (“Withdrawal Act 2020”), provides for the repeal of Section 13(2) Finance Act 2019 and Section 27 of Part 8 of the Withdrawal Act 2020 extends the definition of “qualifying payment” in Section 192BA(1) to include payments made under the law of the United Kingdom. This is subject to Ministerial Order, on such day as the Minister for Finance may appoint.

Relevant Date: Finance Act 2021