4. Tax credits
Child tax credit (CTC) remains payable for a child, provided s/he is treated as ‘normally living with’ you.1Reg 3 CTC Regs HM Revenue and Customs (HMRC) guidance says this means that the child ‘regularly, usually, typically’ lives with you and that this allows for temporary or occasional absences.2para 02202 TCTM In addition, the tax credit rules allow your child to be treated as ‘normally living with you’ while s/he is in residential accommodation, provided:3Reg 3 r4.2 CTC Regs •s/he is there solely because of her/his disability, or on the grounds that her/his health would be significantly impaired or further impaired were s/he not in that accommodation; and
•you were treated as responsible for her/him for tax credit purposes before s/he went into that accommodation.
This means you should keep receiving CTC for your child even though s/he is away at school. Your child also continues to count as a dependent child for working tax credit (WTC) purposes.