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

Interest on late paid tax

Interest on late paid taxIntroductionInterest on late paid tax is a compulsory charge set out in legislation to reflect the interest which would have accrued to the Exchequer had the correct amount of tax been paid at the right time.Harmonised legislation was introduced in 2009 to:•set statutory

14 Jul 2020 12:00 | Produced by Tolley in association with Philip Rutherford Read more Read more

Capital allowances on cars

Capital allowances on carsSummary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions of 50g/km and below 18%CAA 2001, s 104AASecondhand cars with CO2

14 Jul 2020 11:08 | Produced by Tolley Read more Read more