SCHEDULES
SCHEDULE 3

Tax credits: consequential amendments
25
In section 30C (incapacity benefit), for subsection (5) substitute—
5
Where a person claims the higher rate of short-term incapacity benefit, or long-term incapacity benefit, under section 30A above for a period commencing after he has ceased to be in qualifying remunerative work (within the meaning of Part 1 of the Tax Credits Act 2002) and—
a
the day following that on which he so ceased was a day of incapacity for work for him,
b
he has been entitled to the higher rate of short-term incapacity benefit, or to long-term incapacity benefit, under section 30A above within the period of two years ending with that day of incapacity for work, and
c
he satisfied the relevant tax credit conditions on the day before he so ceased,
every day during that period on which he satisfied those conditions is to be treated for the purposes of the claim as a day of incapacity for work for him.
5A
A person satisfies the relevant tax credit conditions on a day if—
a
he is entitled for the day to the disability element of working tax credit (on a claim made by him or by him jointly with another) or would be so entitled but for the fact that the relevant income (within the meaning of Part 1 of the Tax Credits Act 2002) in his or their case is such that he is not so entitled, and
b
either working tax credit or any element of child tax credit other than the family element is paid in respect of the day on such a claim.