Tax credits

Tax credits

If the care home placement has been arranged solely because of your child’s disability or health, you continue to be responsible for the child for tax credit purposes if you were responsible for her/him before s/he went into the care home.1Reg 3 r4.2 CTC Regs This means that you should receive CTC indefinitely for your child even though s/he is in a care home (because of her/his disability). Your child also continues to count as a dependent child for working tax credit purposes. However, the amount of tax credits you get might change.

 

1     Reg 3 r4.2 CTC Regs »

Amount of tax credits

If your child’s DLA care component or PIP daily living component has stopped (see here), this affects the disabled child and severely disabled child elements as follows.1Reg 8 CTC Regs

•The disabled child element stops being included in your CTC calculation from the date the DLA care component or PIP daily living component stops, unless there is another basis for getting it – ie, your child is still getting DLA or PIP mobility component, or is severely sight impaired or blind.
•The severely disabled child element stops being included in your CTC calculation from the date the DLA care component or PIP daily living component stops.

Make sure you report changes to HMRC to avoid underpayments and overpayments.

 

1     Reg 8 CTC Regs »