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Posted Fri, 10 Feb 2023 09:08:34 GMT by mwgentry
I am a US citizen living/working in the UK. Although I have minimal US-based income, I will receive a $1,500 USD payment for a child tax credit this year. This is not the result of overpayment of taxes withheld or anything like that; it is a fully refundable tax credit which I receive for having one dependent child. I assume this would not be considered taxable income in the UK, as similar tax credit refunds like those issued as part of the US CARES (Covid economic stimulus payments) have been confirmed by HMRC not to be taxable UK income, but I would like to confirm. This has become important to me only this year as it will be the first year I will be filing on the arising basis rather than the remittance basis. Thanks in advance for any help which may be provided.
Posted Tue, 14 Feb 2023 14:48:14 GMT by HMRC Admin 17

Hi,
 
As the credit is not actually earned income then you do not include it in your UK tax return .

Thank you.

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