#2026/538Kinship Zone Allowance Payments Exempted from Income Tax
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
Kinship allowance payments made under the Kinship Zones pilot scheme will not be taxed as income. The change applies to eligible kinship carers in England and Wales who receive weekly financial support from selected local authorities funded by the Department for Education. For carers, this means the full allowance can be used to help cover the cost of caring for a child, rather than part of it being lost to income tax. Local authorities running the scheme should treat these payments as tax-exempt from 9 June 2026.
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Key Changes
- Adds Kinship Zones allowance payments to the list of payments exempt from income tax
- Applies to payments made to people caring for a child under the Kinship Zones pilot scheme
- Takes effect on 9 June 2026 in England and Wales
Obligations
What this law requires
Treat kinship allowance payments made under the Kinship Zones scheme to persons providing care to a child as exempt from income tax from 9 June 2026.
Selected local authorities in England and Wales providing weekly financial allowances to eligible kinship carers under the Kinship Zones scheme must not treat those payments as taxable income when administering the allowance.