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That's how I interpret it, yes. I have been out of the UK for 12 years, but paid tax for 18 years before that in the UK. I would not be entitled to tax credits for 4 years when I return to the UK under these rules. I do not particularly have a problem with that as it stands, but may of course...

Seems fine to me also. Are Tax Credits automatic, or do you have to apply for them?