Loading…

Statutory Instruments

2026 No. 538

INCOME TAX, ENGLAND AND WALES

The Income Tax (Exemption of Kinship Allowance Payments in Kinship Zones) Order 2026

Made

18th May 2026

Laid before the House of Commons

19th May 2026

Coming into force

9th June 2026

The Treasury make this Order in exercise of the powers conferred by section 747 of the Income Tax (Trading and Other Income) Act 2005(1).

Citation and commencement

1. This Order may be cited as the Income Tax (Exemption of Kinship Allowance Payments in Kinship Zones) Order 2026 and comes into force on 9th June 2026.

Amendment of section 744 of the Income Tax (Trading and Other Income) Act 2005

2. In section 744 of the Income Tax (Trading and Other Income) Act 2005 (payments to adopters, etc: England and Wales)(2)—

(a)in subsection (1)—

(i)in paragraph (j) for “.” substitute “, and”;

(ii)after paragraph (j) insert—

“(k)kinship allowance payments made to a person providing care to a child, under section 1 of the Localism Act 2011(3), under the scheme known as Kinship Zones(4).”;

(b)in subsection (2), for “or (j)” substitute “, (j) or (k)”.

Gen Kitchen

Christian Wakeford

Two of the Lords Commissioners of His Majesty’s Treasury

18th May 2026

(2)

Section 744 was amended by section 2 of the Finance (No. 3) Act 2010 (c. 33), paragraph 68 of Schedule 2 to the Children and Families Act 2014 (c. 6) and S.I. 2016/413 (W. 131).

(4)

The Department for Education will provide funding to selected local authorities,within Kinship Zones. Those local authorities will use their powers under section 1 of the Localism Act 2011 to provide a weekly financial allowance to eligible kinship carers. Further information may be found on the website at: https://assets.publishing.service.gov.uk/media/69ca946bb111d64c49bb3d8b/Kinship_Zones_programme_specification.pdf. Paper copies of the guidance are available for inspection at: His Majesty’s Revenue and Customs, 100 Parliament Street, London SW1A 2BQ.

Status: This is the original version (as it was originally made). This item of legislation is currently only available in its original format.
The Income Tax (Exemption of Kinship Allowance Payments in Kinship Zones) Order 2026 (2026/538)
Version from: original only

Displaying information

Status of this instrument

in force Provision is in force
in force* In force only for specified purposes (for detail about the purposes see/hover footnote)
not in force Not in force in England (may be in force in other geographies, see footnotes)
italics Defined term
dfn Defined term (alternative style)
gry bckgrd the in-force status of the provision is complex, check the footnotes

Status of changes to instrument text

The list includes made instruments, both those in force and those yet to come into force. Typically, instruments that are not yet in force (hence their changes are not incorporated into the text above) are indicated by description 'not yet' in the changes made column.