Revenue Note for Guidance
This section provides a tax credit of €3,300 for a person who proves for a year of assessment that he/she has an incapacitated child. The credit is also available in the case of an incapacitated child who is not the child of the claimant but is in the custody of and maintained by the claimant.
(1) An individual is entitled to a tax credit of €3,300 for any year of assessment where the individual proves that at any time during that year he/she had living any child who—
(2)(a) A child under 18 is regarded as permanently incapacitated by reason of mental or physical infirmity only if that infirmity is such that if the child were over 18 there would be a reasonable expectation that he/she would be incapacitated from maintaining himself/herself.
(2)(b) A claimant may claim either the tax credit under this section or the dependent relative tax credit (section 466) but not both in respect of the same child.
(3) Where a claimant proves that he/she has custody of and maintains at his/her own expense any child who but for the fact that the child is not a child of the claimant (for example, an informally adopted child) would be an incapacitated child, that neither he/she nor anyone else is entitled to any tax credit (other under section 466A) in respect of the child or, if any other individual is entitled to such a tax credit, that the individual in question has relinquished the rights to such tax credit, then, the claimant is entitled to the same tax credit for the child as if the child were his/hers.
(4) The references to a child receiving full-time instruction at an educational establishment include a child undergoing an apprenticeship in a trade or profession, provided the full-time training lasts a minimum period of 2 years. An inspector may request the employer to furnish any details in respect of such training.
(5) The Revenue Commissioners may consult with the Minister for Education and Skills where a question arises as to whether an allowance under this section should be granted in respect of a child over 21 who had become permanently incapacitated by reason of mental or physical infirmity from maintaining himself/herself after reaching 21 but while receiving full-time instruction.
(6) Where for any year of assessment 2 or more individuals would be entitled to relief in respect of the same child the following provisions apply-
Relevant Date: Finance Act 2021