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HMRC internal manual

Tax Credits Manual

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HM Revenue & Customs
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Eligibility - miscellaneous: Disability - patients in hospital

Background

Disabled adults, and children and young persons may qualify for Disability Living Allowance (DLA),Personal Independence Payment (PIP) or Armed Forces Independence Payment (AFIP). Only disabled adults over 65 can qualify for Attendance Allowance (AA).

Note: The rules relating to AA are the same as those for an adult entitled to DLA / PIP / AFIP.

Note: From 08/04/13 PIP will be introduced as a replacement for DLA for customers of working age (16-64 years of age). PIP will be made of two elements consisting of daily living and mobility and two levels of rates which are standard or enhanced. Customers under 16 and over 65 years old will remain on DLA.

Note: For tax credits purposes, the Highest Rate Care Component of DLA is the same as the Enhanced rate of daily living component of PIP, and will allow the customer to qualify for the Severe Disability element, so long as the other qualifying conditions are met. There is also an Enhanced mobility component of PIP, but this does not allow the customer to qualify for the extra element.

Note: For tax credits purposes, the current low and middle rates of DLA (whether care or mobility) will be either standard daily living or standard mobility component of PIP, and will allow the customer to qualify for the Disability element so long as the other qualifying conditions are met.

Note: From 08/04/13 Armed Forces Independence Payment (AFIP) will be introduced to replace Disability Living Allowance (DLA) for members and ex-members of HM Forces (Army, Navy, Air Force etc). A customer entitled to AFIP will receive the benefit for life, at the equivalent Enhanced rate of Personal Independence Payment (PIP) or higher rate of DLA, and will entitle a tax credit customer to the severe disability element of Working Tax Credit. The Service Personnel and Veterans Agency (SPVA), a division of the Ministry of Defence, will administer AFIP. The Department for Work and Pensions are responsible for making AFIP payments and maintaining the awards.

Guidance

Step 1

If you are dealing with an enquiry relating to an adult or young person, go to .

If you are dealing with an enquiry relating to a child, go to .

Step 2

DLA / PIP / AFIP is not generally payable for any period during which a person is undergoing treatment as an in-patient in a hospital or similar institution. There is an exception to this rule - for the first 28 days (or periods separated by 28 days or less that add up to 28 days) of hospitalisation, DLA / PIP / AFIP will remain payable. For how this affects entitlement to tax credits, follow the guidance in TCM0122100.

For DLA / PIP / AFIP to have ceased because a person is a patient, it must have been in payment at some time.

For DLA / PIP / AFIP to be classed as being in receipt but for suspension or hospitalisation, it need not have been in payment at some time.

For more information on how hospitalisation may affect membership of the family, use TCM0122120, TCM0114060 and TCM0122040.

Step 3

DLA / PIP is not generally payable for any period during which a child is undergoing treatment as an in-patient in a hospital or similar institution. There is an exception to this rule - for the first 84 days (or periods separated by 28 days or less that add up to 84 days) of hospitalisation, DLA / PIP will remain payable. For how this affects entitlement to tax credits, follow the guidance in TCM0122100.

For DLA / PIP to have ceased because a child is a patient, it must have been in payment at some time.

For DLA / PIP to be classed as being in receipt but for suspension or hospitalisation, it need not have been in payment at some time.

For more information on how hospitalisation may affect membership of the family, use TCM0122120 and TCM0114060.