Paschal Donohoe (Dublin Central, Fine Gael)
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The Incapacitated Child Tax Credit (ICTC) which is provided for by section 465 of the Taxes Consolidation Act (“TCA”) 1997, is available to an individual who has a child living, at any time in a year of assessment, who:

• if under 18 years of age is permanently incapacitated by reason of mental or physical infirmity and the infirmity is such that there would be a reasonable expectation that if the child were over the age of 18, the child would be incapacitated from maintaining himself or herself, or
• if over the age of 18 years at the beginning of the year, is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself and had become so permanently incapacitated either before attaining the age of 21 or whilst in receipt of full-time instruction at a university, college, school or other educational establishment.

The credit may also be available to an individual who has custody of, and maintains at his or her own expense, a child who fulfils the above criteria.

As with all tax credits the onus is on the taxpayer to prove entitlement to the credit. In the case of the ICTC, I am advised by Revenue that the mechanism adopted by Revenue to attain such proof is the provision of a completed Form ICC1 and a Form ICC2. In order to claim the ICTC, the Form ICC2 must be certified by the child's medical practitioner - this can be a GP or a Consultant who is registered with the Medical Council.

With reference to a clinical psychologist completing the Form ICC2, in cases where the clinical psychologist is a medical practitioner then Revenue will accept same. Alternatively, the clinical psychologist may provide their professional opinion to the medical practitioner so that the medical practitioner is sufficiently informed to complete the Form ICC2.

Revenue’s role is to administer the tax system in accordance with the relevant legislation. Accordingly, Revenue does not adjudicate on the medical grounds for eligibility to the credit but does provide guidance on Revenue’s interpretation of section 465 TCA 1997 and what those medical grounds might be. The child’s medical practitioner provides the assessment of the child’s medical condition and prognosis for the claimant on the Form ICC2. The medical practitioner, in providing this confirmation on the Form ICC2, is directed to the relevant Revenue guidance to ensure the prognosis, for the purposes of the tax credit, and any resulting certification of the Form ICC2 is made in full understanding of the conditions of the credit.

Further details in relation to the Incapacitated Child Tax Credit can be found at the links below:

• Revenue website: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/incapacitated-child-credit/index.aspx
• Tax and Duty Manual Part 15-01-05: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-05.pdf

I have no current plans to amend the scheme. However, as with all tax expenditures, the ICTC is kept under regular review by my Department as part of its ongoing programme of work. My Department carried out a review of the ICTC in 2024. The review was conducted in line with the Department’s Tax Expenditure Guidelines and involved consultation with Revenue. The report is available at the following link: