Employing the children

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Employing the children

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

What is a child for tax purposes?

In income tax legislation, the term 'child' refers to offspring, ie it includes adult children. Children under the age of 18 are indicated by the terms ‘infant’ or ‘minor’. It should be noted that in Scotland the legal capacity rules differ with full legal capacity from the age of 16. The definition of a child includes an adopted child and an illegitimate child. See Simon’s Taxes E5.201.

Stepchildren are specified as being within the definition of ‘child’ in various provisions of the tax acts. For example, the settlements legislation brings stepchildren within the definition of child by virtue of ITTOIA 2005, s 629(7)(a). However, there is no general provision that a stepchild is regarded as a child for the purposes of the taxes acts. Therefore, unless specified within the rules it may be necessary to consider the implications of whether a stepchild is a child or not.

These general rules on the meaning of the term ‘child’ do not apply for child tax credit purposes.

Taxation of minor children

Minor

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+

Popular Articles

SEIS and EIS ― overview

SEIS and EIS ― overviewThe seed enterprise investment scheme (SEIS) and enterprise investment scheme (EIS) are very similar schemes which offer substantial tax incentives to investors in companies which qualify. The tax incentives for SEIS and EIS investments are intended to encourage investment in

14 Jul 2020 13:31 | Produced by Tolley Read more Read more

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more Read more

Tax implications of administration and liquidation

Tax implications of administration and liquidationThis guidance considers the tax implications of a company going into administration or liquidation.Introduction to company administration and liquidationCompany going into administrationA company which is in financial difficulty may go into

14 Jul 2020 15:29 | Produced by Tolley Read more Read more