Tax credits

Tax credits

Most people are not able to make a new claim for tax credits, but have to claim UC instead. See here for more details. The information in this section applies to you if you are already getting tax credits or you are in the group who is still able to claim tax credits.

Once you have adopted a child, you can count as responsible for her/him for tax credits purposes – ie, you can claim tax credits in respect of her/him.

Child tax credit

You can claim CTC for the child you have adopted, provided you satisfy the normal rules explained on here. The ‘two-child limit’ (see here) does not apply if you adopt a child (agency adoption). This means that even if you already have two or more dependent children and you adopt a child born on or after 6 April 2017, you can get the child element in your CTC for the child you have adopted, providing you satisfy the normal conditions of entitlement.1Reg 11 CTC Regs If you subsequently give birth to a child, the child placed for adoption is ‘disregarded’ when applying the two-child limit.2Reg 9 CTC Regs

 

1     Reg 11 CTC Regs »

2     Reg 9 CTC Regs »

Working tax credit

To get working tax credit (WTC) you, or your partner, must be in full-time paid work. If you are responsible for at least one dependent child (see here), full-time paid work means at least 16 hours a week if you are a single claimant and usually means 24 hours a week if you are a couple (see here).

If, as a result of adopting a child, you pay a childminder, nursery or other childcare provider, you may become entitled to an increased amount of WTC (see here).

You are treated as being in full-time paid work during any period when you are being paid SAP, SPP or SSPP and during any period when you are absent from work during adoption or paternity leave or during statutory shared parental leave during which you could have received SSPP, provided you were in qualifying remunerative work before you went on adoption/paternity/shared parental leave,1Reg 5 WTC(EMR) Regs or would have counted as being in qualifying remunerative work if you had been responsible for a child.2Reg 5A WTC (EMR) Regs

Any adoption allowance you are paid is disregarded for tax credits.3Reg 19 Table 6 para 11(a) TC(DCI) Regs £100 a week of SAP/SPP/SSPP is disregarded for tax credits.4Reg 4(1)(h) TC(DCI) Regs

 

1     Reg 5 WTC(EMR) Regs »

2     Reg 5A WTC (EMR) Regs »

3     Reg 19 Table 6 para 11(a) TC(DCI) Regs »

4     Reg 4(1)(h) TC(DCI) Regs »