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HMRC internal manual

Tax Credits Technical Manual

From
HM Revenue & Customs
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Entitlement: WTC entitlement: Childcare element: Meaning of incapacitated

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 13 (4) to (12)

The other member of a couple is treated as incapacitated if any of the following are payable in respect of them, or in the case of a credit, they have entitlement to:

  • Higher rate short-term Incapacity Benefit
  • Long-term Incapacity Benefit
  • Severe Disablement Allowance
  • Housing Benefit with

    • Disability Premium

    or

    • Higher Pensioner Premium
  • Personal Independence Payment
  • Armed Forces Independence Payment
  • Incapacity Benefit at the short term higher rate or long term rate
  • Contributory Employment and Support Allowance, or a limited capability for work credit, where that allowance or credit, or statutory sick pay, or a benefit or allowance in the first three bullet points above has been in payment for a period of 28 weeks, either as one continuous period or consisting of two or more periods which are linked together provided that, if they received statutory sick pay, they meet the first and second contribution conditions set out in paragraphs 1 and 2 of Schedule 1 to the Welfare Reform Act (See Notes 1 and 2 below).
  • Attendance Allowance
  • Severe Disablement Allowance
  • Disability Living Allowance
  • Industrial Injuries Disablement Benefit with Constant Attendance Allowance or Mobility Supplement
  • War Disablement Pension with Constant Attendance Allowance or Mobility Supplement

or, if they are provided with a vehicle under the Invalid Vehicle Scheme

  • Council Tax Benefit (See Note 3 below)

Note 1: The 28 weeks does not need to be a single continuous period. The claimant can add together:

* any periods that they received contribution-based ESA , or a limited capability for work credit, or statutory sick pay, or incapacity benefit short-term higher or long-term rate, or severe disablement allowance.
* any periods that they received SSP, as long as they were no more than eight weeks apart
* any periods that they received SSP with periods that they received contribution-based ESA, as long as they were no more than 12 weeks apart and they met the contribution conditions for contribution-based ESA on the days that they received SSP.

Note 2: Limited capability for work credit only effective from 30 April 2012 and only applies following the cessation of the 12 months entitlement period to ESA(C).

Note 3: Council Tax Benefit was abolished with effect from 1 April 2013. Couples whose working tax credit entitlement depends solely on the non-working partner being treated as “incapacitated” by virtue of receiving Council Tax Benefit, only remain entitled if:

* Council Tax Benefit was payable on 31 March 2013
* the amount payable included a Disability Premium, and
* entitlement to working tax credit has been uninterrupted since 31 March 2013