3.— (1) Section 3 (as amended by section 37 of and Schedule 7 to the Act of 2006) of the Principal Act is amended by substituting the following subsection for subsection (5):

“(5) For the purposes of determining the person with whom a qualified child normally resides—

(a) such determination, other than such determination for the purposes of Part 4, shall be made in accordance with section 296A and regulations made under that section, and

(b) such determination for the purposes of Part 4, shall be made in accordance with section 220 and regulations made under that section.”.

(2) The Principal Act is amended by inserting the following section after section 296:

“Normal residence of qualified child.

296A.— (1) For the purposes of this Act, other than Part 4, a qualified child may be regarded as normally residing with more than one person.

(2) The Minister may make regulations for determining the person or persons, referred to in subsection (3), with whom a qualified child shall be regarded as normally residing.

(3) For the purposes of subsection (2) a qualified child may be regarded as normally residing with—

(a) both of his or her parents in the same household,

(b) one of his or her parents in separate households, or

(c) a step-parent.

(4) Notwithstanding subsection (3), where the parent with whom the child is regarded as normally residing is a member of a household and that parent so consents, the child shall be treated as normally residing with another member of that household.

(5) Notwithstanding that a qualified child does not reside with one of his or her parents, the qualified child may be regarded as normally residing with the parent who—

(a) has custody of the qualified child, and

(b) is contributing substantially to the maintenance of the qualified child.

(6) Notwithstanding that a qualified childresides with one parent who is—

(a) living apart from the other parent, and

(b) not claiming or in receipt of benefit or assistance,

the qualified child shall be treated as residing with the other parent if that other parent is contributing substantially to the maintenance of the child.

(7) Where the normal residence of a qualified child does not fall to be determined under subsection (3), (4), (5) or (6), he or she shall be regarded as normally residing with the head of the household of which he or she is normally a member and with no other person.

(8) Where a person who is, in accordance with this section and regulations made under it, determined to be a person with whom a qualified child normally resides—

(a) abandons or deserts the child, or

(b) fails to contribute substantially to the maintenance of the child,

the qualified child shall cease to be regarded as normally residing with that person.

(9) Where a qualified child ceases, in accordance with subsection (8), to be regarded as normally residing with a person, regulations under this section shall provide for determining the person with whom, subsequent to such cessation, the child is regarded as normally residing.

(10) Where a qualified child is resident in an institution and contributions are made towards the cost of his or her maintenance in that institution, the child shall be regarded as normally residing with the person who makes those contributions towards the cost of the maintenance of the child in the institution, and with whom the child would be regarded as normally residing, if the child were not resident in an institution.

(11) Where the normal residence of a qualified child referred to in subsection (10) has been determined in accordance with that subsection and subsequent to that determination the person with whom the qualified child would be regarded as normally residing has abandoned or deserted the child, the qualified child shall cease to be regarded as normally residing with that person.

(12) Regulations under this section may provide for determining the normal residence of a qualified child—

(a) where a person with whom the qualified child normally resides dies, and

(b) where the parents of the qualified child are separated or living apart.

(13) Where a qualified child in respect of whom a declaration within the meaning of section 17 of the Refugee Act 1996 is in force, the qualified child shall be regarded as normally residing with the head of the household of which the child is for the time being a member and with no other person.”.