Tax Credits Act 2002 Schedule 3 para 42

Long-term incapacity benefit for widows and widowers

Schedule 3 paragraph 42 amends the rules on long-term incapacity benefit for widows and widowers, updating cross-references from the old disability working allowance system to the new tax credits framework under the Tax Credits Act 2002.

• Where a widow or widower stops qualifying remunerative work and claims incapacity benefit, certain days may be treated as days of incapacity for work if specific conditions are met.
• The claimant must have had a day of incapacity immediately after ceasing work, must have been entitled to incapacity benefit within the previous two years, and must have satisfied the relevant tax credit conditions on the day before stopping work.
• The relevant tax credit conditions require entitlement (or notional entitlement but for income levels) to the disability element of working tax credit, whether claimed individually or jointly.
• In addition, either working tax credit or any element of child tax credit other than the family element must actually be paid in respect of the day in question.