# Are Adoption Allowances taxable?



## Guest (Jan 4, 2010)

We were paid fostering allowances when our kids first came to us and these were still paid for a few months after the Adoption Order was granted as we were expected to get Adoption Allowances.  In the end we didn't get the Adoption Allowance but we also didn't need to repay the extra.  

We never declared them for tax purposes as we knew fostering allowances are exempt, but a casual conversation the other day suggested adoption allowances are taxable and the extra few months were "legally" adoption allowances.  If they are taxable then we should declare them, but I don't want to open up a can of worms unncessarily.  

Thanks
Bop


----------



## Boggy (Dec 13, 2006)

Hi Bop

No, Adoption Allowances are not taxable (woo hoo!).  I'll try to find the evidence to back myself up and post it later if I find it!

bX 

P.S. the reason the allowance is not taxable is that it is in the child's name, not the adoptive parents. It's not a salary, technically the monwy belongs to the child.


----------

