Childcare accounts
I1I219Payments into childcare accounts
1
In this Act “qualifying payment” means any payment made into a childcare account, other than—
a
a top-up payment, or
b
a repayment of the whole or part of any payment made from the childcare account.
But for the purposes of paragraph (b) a withdrawal made by the account-holder is not to be regarded as a payment made from a childcare account.
2
Any person (including the account-holder) may make a qualifying payment into a childcare account during an entitlement period, provided that—
a
the account-holder has made a valid declaration of eligibility for the entitlement period, and
b
the child in respect of whom the account is held is a qualifying child at the time of the payment.
This is subject to any provision made by or under this Act.
3
More than one qualifying payment may be made into a childcare account during an entitlement period.
4
But the sum of any qualifying payments made into a childcare account in an entitlement period must not exceed the relevant maximum for the entitlement period.
5
The relevant maximum for an entitlement period F2is—
a
in the case of a disabled child, £4,000, and
b
in the case of any other child, £2,000.
This is subject to subsection (6).
6
Regulations may provide, or enable HMRC to provide, that in circumstances specified in the regulations the relevant maximum for an entitlement period is an amount—
a
specified in, or determined in accordance with, the regulations, or
b
determined by HMRC in accordance with powers conferred by the regulations.
7
Regulations may amend subsection (5) so as to substitute a different amount or amounts for any amount for the time being specified there.
8
For the purposes of subsection (4), any amount paid into a childcare account at any time during an entitlement period is to be disregarded if at a later time during the entitlement period an equivalent amount is withdrawn from the account by the account-holder.
9
The account provider must notify HMRC of any qualifying payments made into a childcare account.
F110
In subsection (5) “disabled child” is to be read in accordance with regulations made under section 14(1).