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Children's Handbook Scotland | 2024/25

4. Tax credits

• The amount of tax credits

Child tax credit (CTC) remains payable for a child, provided they are 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 they are in residential accommodation, provided:3Reg 3 r4.2 CTC Regs

•they are there solely because of their disability, or on the grounds that their health would be significantly impaired or further impaired were they not in that accommodation; and
•you were treated as responsible for them for tax credit purposes before they went into that accommodation.

This means you should keep receiving CTC for your child even though they are away at school. Your child also continues to count as a dependent child for working tax credit (WTC) purposes.

 

1     Reg 3 CTC Regs »

2     para 02202 TCTM »

3     Reg 3 r4.2 CTC Regs »

The amount of tax credits

If your child’s child disability payment (CDP) care component or adult disability payment (ADP) or personal independence payment (PIP) daily living component has stopped (see here), this affects the disability and severe disability elements as follows.1Reg 8 CTC Regs

•The disabled child element stops being included in your CTC calculation from the date the CDP care component/ADP or PIP daily living component stops (see here), unless there is another basis for getting it – ie, your child is still getting CDP, ADP 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 CDP care component/ADP or PIP daily living component stops (see here).

If your child’s CDP care component/ADP or PIP daily living component starts being paid again (eg, because they come home for a weekend or a holiday – see here), the disabled child element/severely disabled element should be included in your CTC for the days CDP/ADP/PIP is paid.

If you are getting help with childcare costs in your WTC, this may change when your child is away at school. If your childcare costs stop or reduce by £10 or more over a period of four weeks, you must let HMRC know.

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

 

1     Reg 8 CTC Regs »