My client has Fostered many children over many years but thay have recently decided to adopt.
They have had their income means tested and they qualify for Assisted Adoption payments. This is split into two parts, Permamemcy Fee and Asssisted Adoption Allowance. Combined these payments come to a not insignificant weekly amount.
I have dealt with the Foster Care 'income' in the past but with the significant tax allowances available there has never been any tax payable.
I beleive that ITTOA s744 exempts these adpotion payments but would welcome the thoughts of those with more experinnce in this area.
Replies (4)
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Apparently not!
I've looked at The Adoption Allowance Regulations 1991 ... https://www.legislation.gov.uk/uksi/1991/2030/made ... but there's no mention of taxable status.
As you say, ITTOA s744 looks promising - but there are a lot of conditions in play (for many of which I've got no experience in this context), so you need input from someone with direct experience.
Can the agency that arranged the adoption not provide advice?
I beleive that ITTOA s744 exempts these adpotion payments
Seems to me that, like s744, you need to be more specific. (I.e. which bit/s of s744 do you believe apply/ies?) As soon as you've confirmed that, you have your answer, surely?