Office of Public Sector Information
PART 1 continued
(1) If an overpayment of a tax credit for a period is attributable to fraud or neglect on the part of the person, or either or both of the persons, to whom the award of the tax credit was made (or a person acting for him, or for either or both of them, in making the claim for the tax credit), the Board may decide that the whole or any part of the overpayment is to carry interest.
(2) Where the Board so decide the overpayment (or part of the overpayment) carries interest at a prescribed rate from the date thirty days after the appropriate date.
(3) “The appropriate date” is—
(a) in the case of an amount treated as an overpayment by virtue of section 28(6), the date of the decision under section 16 to terminate the award, and
(b) in any other case, the date specified for the purposes of subsection (4) of section 17 in the notice given to the person or persons under that section in relation to the tax credit.
(4) The Board must give notice of a decision under subsection (1) to the person, or each of the persons, to whom it relates; and the notice must state the date on which it is given and include details of the right to appeal against the decision under section 38.
(5) A penalty under any of sections 31 to 33 carries interest at the prescribed rate from the date on which it becomes due and payable; but the Board may in their discretion mitigate any interest or entirely remit any interest which would otherwise be carried by a penalty.
(6) Any interest carried under this section by an overpayment or penalty is to be regarded for the purposes of section 29(3) to (5) or paragraph 7 of Schedule 2 as if it were part of the overpayment or penalty.
(1) An appeal may be brought against—
(a) a decision under section 14(1), 15(1), 16(1), 19(3) or 20(1) or (4) or regulations under section 21,
(b) the relevant section 18 decision in relation to a person or persons and a tax credit for a tax year and any revision of that decision under that section,
(c) a determination of a penalty under paragraph 1 of Schedule 2, and
(d) a decision under section 37(1).
(2) “The relevant section 18 decision” means—
(a) in a case in which a decision must be made under subsection (6) of section 18 in relation to the person or persons and the tax credit for the tax year, that decision, and
(b) in any other case, the decision under subsection (1) of that section in relation to the person or persons and the tax credit for the tax year.
(1) Notice of an appeal under section 38 against a decision must be given to the Board in the prescribed manner within the period of thirty days after the date on which notice of the decision was given (or, in the case of a decision to which section 23(3) applies, the date of the decision).
(2) Notice of such an appeal must specify the grounds of appeal.
(3) An appeal under section 38 is to the General Commissioners but the appellant may elect (in accordance with section 46(1) of the Taxes Management Act 1970 (c. 9)) to bring the appeal before the Special Commissioners instead.
(4) Subsections (2) to (7) of section 31D of the Taxes Management Act 1970 (which relate to an election to bring proceedings before the Special Commissioners) have effect in relation to an election under subsection (3) (as in relation to an election under subsection (1) of that section).
(5) On the hearing of an appeal under section 38 the General Commissioners or Special Commissioners may allow the appellant to put forward grounds not specified in the notice, and take them into consideration if satisfied that the omission was not wilful or unreasonable.
(6) Part 5 of the Taxes Management Act 1970 (appeals to Commissioners) applies in relation to appeals under section 38 (as in relation to appeals under the Taxes Acts, within the meaning of that Act), but subject to such modifications as are prescribed.
(7) Any regulations under section 56B of the Taxes Management Act 1970 (c. 9) which are in force immediately before the commencement of subsection (6) apply, subject to any necessary modifications, for the purposes of appeals under section 38 (until amended or revoked).
(1) The Board must make to the Treasury an annual report about—
(a) the matters required by section 2(5) to be set forth in the accounts mentioned in section 13 of the Inland Revenue Regulation Act 1890 (c. 21),
(b) the number of awards of child tax credit and of working tax credit,
(c) the number of enquiries conducted under section 19,
(d) the number of penalties imposed under this Part, and
(e) the number of prosecutions and convictions for offences connected with tax credits.
(2) The Treasury must publish each annual report made to it under subsection (1) and lay a copy before each House of Parliament.
(1) The Treasury must, in each tax year, review the amounts specified in subsection (2) in order to determine whether they have retained their value in relation to the general level of prices in the United Kingdom as estimated by the Treasury in such manner as it considers appropriate.
(2) The amounts are monetary amounts prescribed—
(a) under subsection (1)(a) of section 7,
(b) for the purposes of any of paragraphs (a) to (d) of subsection (3) of that section,
(c) under section 9,
(d) under section 11, otherwise than by virtue of section 12, or
(e) under subsection (2) of section 13, otherwise than by virtue of subsection (3) of that section.
(3) The Treasury must prepare a report of each review.
(4) The report must include a statement of what each amount would be if it had fully retained its value.
(5) The Treasury must publish the report and lay a copy of it before each House of Parliament.
(1) Regulations may make provision in relation to persons subject to immigration control or in relation to prescribed descriptions of such persons—
(a) for excluding entitlement to, or to a prescribed element of, child tax credit or working tax credit (or both), or
(b) for this Part to apply subject to other prescribed modifications.
(2) “Person subject to immigration control” has the same meaning as in section 115 of the Immigration and Asylum Act 1999 (c. 33).
(1) Regulations may make provision for this Part to apply in relation to persons who are parties to polygamous marriages subject to prescribed modifications.
(2) A person is a party to a polygamous marriage if—
(a) he is a party to a marriage entered into under a law which permits polygamy, and
(b) either party to the marriage has a spouse additional to the other party.
This Part applies in relation to persons employed by or under the Crown (as in relation to other employees).
(1) Every assignment of or charge on a tax credit, and every agreement to assign or charge a tax credit, is void; and, on the bankruptcy of a person entitled to a tax credit, the entitlement to the tax credit does not pass to any trustee or other person acting on behalf of his creditors.
(2) In the application of subsection (1) to Scotland—
(a) the reference to assignment is to assignation (“assign” being construed accordingly), and
(b) the reference to the bankruptcy of a person is to the sequestration of his estate or the appointment on his estate of a judicial factor under section 41 of the Solicitors (Scotland) Act 1980 (c. 46).
The Board may give any notice which they are required or permitted to give under this Part in any manner and form which the Board consider appropriate in the circumstances.
Schedule 3 (consequential amendments) has effect.
In this Part—
“child” has the meaning given by section 8(3),
“the current year income” has the meaning given by section 7(4),
“employee” and “employer” have the meaning given by section 25(5),
“the General Commissioners” means the Commissioners for the general purposes of the income tax appointed under section 2 of the Taxes Management Act 1970 (c. 9),
“the income threshold” has the meaning given by section 7(1)(a),
“joint claim” has the meaning given by section 3(8),
“married couple” has the meaning given by section 3(5),
“overpayment” has the meaning given by section 28(2) and (6),
“the previous year income” has the meaning given by section 7(5),
“qualifying remunerative work”, and being engaged in it, have the meaning given by regulations under section 10(2),
“qualifying young person” has the meaning given by section 8(4),
“the relevant income” has the meaning given by section 7(3),
“responsible”, in relation to a child or qualifying young person, has the meaning given by regulations under section 8(2) (for the purposes of child tax credit) or by regulations under section 10(4) (for the purposes of working tax credit),
“single claim” has the meaning given by section 3(8),
“the Special Commissioners” means the Commissioners for the special purposes of the Income Tax Acts appointed under section 4 of the Taxes Management Act 1970 (c. 9),
“tax year” means a period beginning with 6th April in one year and ending with 5th April in the next, and
“unmarried couple” has the meaning given by section 3(6).
Tax Credits Act 2002