The Child Tax Credit ("CTC") is a 15% non-refundable credit based on an indexed amount ($2,131 in 2011) that can be claimed by parents for each child who is under 18 years of age at the end of a taxation year. However, current rules restrict claiming the credit to not more than one individual per domestic establishment, which means that when two or more families share a home, only one individual in one family may claim the CTC in respect of his or her children.

The Budget proposes to repeal the rule that limits the number of CTC claimants to one per domestic establishment to ensure that sharing a home does not prevent otherwise-eligible parents from claiming the CTC.

This measure will apply to the 2011 and subsequent taxation years