SI 2020/922 – The Income Tax (Care Leaver’s Apprenticeship Bursary Payment) Regulations 2020

Released 07 September 2020

SI 2020/922 specifies conditions to be met for payments to qualify for the income tax exemption in ITEPA 2003, s. 254A from 29 September 2020.

The Income Tax (Care Leaver’s Apprenticeship Bursary Payment) Regulations 2020 specify conditions that must be met in order for a payment to fall within the definition of a “care leaver’s apprenticeship bursary payment” in the Income Tax (Earnings and Pensions) Act 2003, s. 254A(2). These conditions are relevant for the purposes of establishing whether or not the income tax exemption at s. 254A(1) will be applicable to certain payments that would otherwise be taxable as employment income.  The regulations also specify conditions that must be met for a person to be a ‘care leaver’ and the meaning of an ‘apprentice’. ITEPA 2003, s. 254A, as inserted by Finance Act 2020, s. 11, introduced a new income tax exemption for certain bursary payments that are payable out of the public revenue to a care leaver and which are made in connection with that person’s employment as an apprentice. The regulations come into force on 29 September 2020.

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