Child Tax Credits & Adoption Payments

davang65

Hi, Does anyone know if Adoption payments from the local authority count towards Child Tax credits? I have telephoned the Tax credit people & they dont seem too sure but are telling me that as the adoption payments are payed through public funding, i.e. the local authority with whom the children were originally placed with under a care order, then they are not counted in any child tax credit claim. I am not convinced & I cannot find any clear statement anywhere online. Thanks

Indie_Kid

Have you spoke to the council?

over_flo

Local authority adoption payments do not count as income for the purposes of tax credits.
However,you either have one or the other - you cannot then claim for the adopted child on your tax credits.
Thats what I was told and have not claimed tax credits for the child we adopted 6 years ago. but tell them about the income each year.
HTH

sassysar

If you receive child benefit for a child you should claim tax credits. Addoption allowance should be disregarded as it would be treated the same as maintainance from a dad. Adoption can bring with it greater expenses to do with the behavior of a child so the money is for them as it were not income for you.

davang65

Hi, Thank you for your advice, I will take it up with the local authority & HMRC.