E2.204 Tax credits—residence tests

Personal and employment tax

E2.204 Tax credits—residence tests

E2.204 Tax credits—residence tests

Note that new claims for tax credits are not possible and the Universal Credit must be applied for instead. Changes in circumstances of a claimant will also trigger migration of the claim to the Universal Credit system. See E2.101.

Continuing eligibility for tax credits depends on certain residences tests being met. In general these are set out in the Tax Credits (Residence) Regulations 20031. The rules are outlined in booklet WTC1 and detailed below.

Presence in the UK

A claim to tax credits may be made2 jointly by members of a couple both of whom 'are in the United Kingdom', or by a person who is not a member of a couple and 'is in the United Kingdom'3. This rule requires physical presence in the UK, but see below regarding short absences and special cases4.

Persons treated as not being in the UK

A person is treated as not being in the UK:


    (a)     if they are not ordinarily resident in the UK. Note this rule does not apply to a Crown servant posted overseas or their spouse or civil partner5. See below regarding the detailed rules for Crown servants and for the general meaning of 'ordinarily resident'


    (b)     if, from 1 July 2014, he has not been living in the UK for a period of 3 months before making a claim, unless leave to stay has been granted under the Immigration Act 2016 section 676

A person who is in the UK as a result of their deportation, expulsion

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