This additional tax credit is available to single parents who have dependant children. The extra tax credit is equal to the single persons tax credit so that the combined tax credits for a single parent equal the normal married persons tax credit. In addition a qualifying single parent is entitled to a slightly increased 20% tax rate band.
With effect from 1 January 2014, the additional credit is only available to the principal carer of the child.
A dependant child, for the purposes of this additional tax credit is a child who at the beginning of the year of assessment is under 18 years of age or if over 18 is receiving full time education. A child who is permanently incapacitated by reason of mental or physical infirmity from maintaining himself will also qualify as a dependant child regardless of age provided they were so incapacitated before reaching 21 years of age. A child also includes a stepchild, a child whose parents have not married, a child who has been informally adopted and an adopted child.
This additional single parent tax credit is not available to an unmarried couple who are living together.