Revenue Note for Guidance

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Revenue Note for Guidance

216C Childcare services relief


This section provides for a scheme of tax relief for certain income arising from the provision of childcare facilities.

The detail of the scheme are as follows:

  • Where the gross annual income from the provision of childcare services does not exceed €15,000 the income is fully exempt from tax.
  • The care must be provided in the carer’s home, not the child’s home.
  • No more than 3 children may be cared for at any one time.
  • The care provider must be self employed (not an employee) and include the gross income in their annual return of income to the Revenue Commissioners. The claim for the tax exemption is made with this return.
  • The claim must be accompanied by evidence that the care provider has notified the person recognised for that purpose by the Health Services Executive. In practice this will mean the officer appointed by the local City or County Childcare Committee. Details of the names and addresses of the officers will be published by the HSE.


This section provides for a scheme of exemption from income tax for certain childcare services.

(1) The following terms are defined:

childcare services” means essentially any form of childminding services or supervised activities to care for minors (persons under 18 years).

qualifying residence” means the principal private residence of an individual in which, at any particular time, in the year of assessment not more than 3 minors are cared for. In determining the number of minors being cared for, minors who occupy the premises as their sole or main residence are not counted.

relevant sums” means all payments received in respect of the provision of childcare services other than sums arising from the provision of childcare services to minors who are —

  1. children of the person providing the service, or
  2. occupying the premises as their sole or main residence.

residential premises” means a building or part of a building used as a dwelling.

The terms of the relief are as follows:

(2)(a) The relief applies to relevant sums arising to an individual under Case I or Case IV, or both, of Schedule D, providing the amount of the relevant sums does not exceed the individual’s limit for the year in question.

(2)(b) In determining the amount of the relevant sums, no deductions in respect of expenses are allowed.

(2)(c) Where this subsection applies, the following shall be nil for the purposes of the Income Tax Acts:

  1. profits or gains, or
  2. losses,

in respect of relevant sums.

(2)(d) Where relevant sums arise to an individual and an election under subsection (3)(a) has been made, then any claim for capital allowances which could have been made shall be deemed to have been made and granted.

(3) The exemption applies where an individual so elects on or before the return date for the year of assessment and the election only applies for that year of assessment. The individual must also show the Revenue Commissioners evidence that they (the individual) have notified the person, recognised by the Health Service Executive for the purposes of such notification, that childcare services are being, will be or have been provided in that year of assessment.

(4) Even though the income in question is exempt from tax, details must be included in the annual tax return.

(5) The individual’s limit for a year of assessment is €15,000.

(6) If more than one person is providing childcare services in one premises, the €15,000 limit is split between them.

(7) Mortgage interest relief on a person’s principal private residence and capital gains tax relief on the disposal of a person’s principal private residence are not affected by the use of the residence for childcare services.

Relevant Date: Finance Act 2021