SCHEDULEMODIFICATION OF TAX CREDITS LEGISLATION (FINALISATION OF TAX CREDITS)

Regulation 11

Modifications to the Tax Credits Act 2002

I11

Paragraphs 2 to 10 prescribe modifications to the application of the Tax Credits Act 2002 where regulation 11 of these Regulations applies.

Annotations:
Commencement Information
I1

Sch. para. 1 in operation at 5.5.2016, see reg. 1

I22

In section 7 (income test)—

a

in subsection (3) before “current year income” in each place where it occurs, insert “notional”;

b

in subsection (4)—

i

for “current year” substitute “current part year”;

ii

in paragraphs (a) and (b) before “tax year” insert “part”;

c

after subsection (4) insert—

4A

In this section “the notional current year income” means—

a

in relation to persons by whom a joint claim for a tax credit is made, the aggregate income of the persons for the part tax year to which the claim relates, divided by the number of days in that part tax year, multiplied by the number of days in the tax year in which the part tax year is included and rounded down to the next whole number of pence; and

b

in relation to a person by whom a single claim for a tax credit is made, the income of the person for that part tax year, divided by the number of days in that part tax year, multiplied by the number of days in the tax year in which the part tax year is included and rounded down to the next whole number of pence.

Annotations:
Commencement Information
I2

Sch. para. 2 in operation at 5.5.2016, see reg. 1

I33

In section 17 (final notice)—

a

in subsection (1)—

i

omit “the whole or”; and

ii

in sub-paragraph (a) before “tax year” insert “part”;

b

in subsection (3) before “tax year” insert “part”;

c

in subsections (4)(a) and (4)(b) for “current year” in both places where it occurs, substitute “current part year”;

d

in subsection (5)(a) for “current year” in both places where it occurs substitute “current part year”;

e

omit subsection (8).

Annotations:
Commencement Information
I3

Sch. para. 3 in operation at 5.5.2016, see reg. 1

I44

In section 18 (decisions after final notice)—

a

in subsection (1), before “tax year” insert “part”;

b

omit subsections (6) to (9);

c

in subsection (10) for “subsection (1), (5), (6) or (9)” substitute “subsection (1) or (5)”;

d

in subsection (11)—

i

after “subsection (5)” omit “or (9)”;

ii

omit paragraph (a);

iii

in paragraph (b) omit “in any other case,”;

iv

before “tax year” in each place where it occurs, insert “part”.

Annotations:
Commencement Information
I4

Sch. para. 4 in operation at 5.5.2016, see reg. 1

I55

In section 19 (power to enquire)—

a

in subsection (1)(a) and (b), before “tax year” insert “part”;

b

in subsection (3) before “tax year” insert “part”;

c

for subsection (5) substitute—

5

“The relevant section 18 decision” means the decision under subsection (1) of section 18 in relation to the person or persons and the part tax year.

d

for subsection (6) substitute—

6

“The relevant section 17 date” means the date specified for the purposes of subsection (4) of section 17 in the notice given to a person or persons under that section in relation to the part tax year.

e

in subsection (11) before “tax year” insert “part”;

f

in subsection (12) before “tax year” in each place where it occurs, insert “part”.

Annotations:
Commencement Information
I5

Sch. para. 5 in operation at 5.5.2016, see reg. 1

I66

In section 20 (decisions on discovery)—

a

in subsection (1) before “tax year” insert “part”;

b

in subsection (4)(a) before “tax year” insert “part”;

c

in subsection (5)(b) before “tax year” insert “part”;

d

in subsection (6)—

i

before “tax year” insert “part”;

ii

in paragraph (a) for “section 18(1), (5), (6) or (9)” substitute “section 18(1) or (5)”;

e

in subsection (7), before “tax year” in each place where it occurs, insert “part”.

Annotations:
Commencement Information
I6

Sch. para. 6 in operation at 5.5.2016, see reg. 1

I77

In section 21 (decisions subject to official error) for “18(1), (5), (6) or (9)” substitute “18(1) or (5)”.

Annotations:
Commencement Information
I7

Sch. para. 7 in operation at 5.5.2016, see reg. 1

I88

In section 23 (notice of decisions)—

a

in subsection (1) for “18(1), (5), (6) or (9)” substitute “18(1) or (5)”;

b

in subsection (3)—

i

after “18(1)” omit “or (6)”;

ii

for paragraph (b) substitute—

b

the notice of the decision under subsection (1) of section 18,

Annotations:
Commencement Information
I8

Sch. para. 8 in operation at 5.5.2016, see reg. 1

I99

In section 30(1) (underpayments) before “tax year” in each place where it occurs, insert “part”.

Annotations:
Commencement Information
I9

Sch. para. 9 in operation at 5.5.2016, see reg. 1

I1010

In section 38 (appeals)—

a

in subsection (1)(b) before “tax year” insert “part”;

b

for subsection (2) substitute—

2

“The relevant section 18 decision” means the decision under subsection (1) of section 18 in relation to the person or persons and the tax credit for the part tax year.

Annotations:
Commencement Information
I10

Sch. para. 10 in operation at 5.5.2016, see reg. 1

Modifications to the Tax Credits (Definition and Calculation of Income) Regulations

I1111

Paragraphs 12 to 23 prescribe modifications to the application of the Tax Credits (Definition and Calculation of Income) Regulations 200260 where regulation 11 of these Regulations applies.

Annotations:
Commencement Information
I11

Sch. para. 11 in operation at 5.5.2016, see reg. 1

I1212

In regulation 2(2) (interpretation) after the definition of “the Macfarlane Trusts” insert—

  • “part tax year” means a period of less than a year beginning with 6th April and ending with the date on which the award of a tax credit terminated;

Annotations:
Commencement Information
I12

Sch. para. 12 in operation at 5.5.2016, see reg. 1

I1313

In regulation 3 (calculation of income of claimant)61—

a

in paragraph (1)—

i

before “tax year” insert “part”;

ii

in Steps 1 and 2 after “of the claimant, or, in the case of a joint claim, of the claimants” insert “received in or relating to the part tax year”;

iii

in the second and third sentences of Step 4, before “year” insert “part”;

b

in paragraph (6A)62 for the words from “ending on 31st March” to the end, substitute “ending on the last day of the month in which the claimant’s award of a tax credit terminated”;

c

in paragraph (8)(b) before “year” insert “part”.

Annotations:
Commencement Information
I13

Sch. para. 13 in operation at 5.5.2016, see reg. 1

I1414

In regulation 4 (employment income)63—

a

in paragraph (1)(a) before “tax year” insert “part”;

b

in paragraph (1)(b), (c), (d), (e), (g) and (k), before “year” insert “part”;

c

in paragraph (1)(f) after “ITEPA” insert “which is treated as received in the part tax year and in respect of which the charge arises in the part tax year”;

d

in paragraph (1)(h) after “week” insert “in the part tax year”;

e

in paragraph (1)(i) for “that year” substitute “the tax year” and after “ITEPA” insert “which is treated as received in the part tax year”;

f

in paragraph (1)(j) after “applies” insert “which is received in the part tax year”;

g

in paragraph (1)(l) for “that year” substitute “the tax year” and after “ITEPA” insert “in respect of which the charge arises in the part tax year”;

h

in paragraph (1)(m) after “paid” insert “in the part tax year”;

i

in paragraph (4) in the first sentence and in the title of Table 1, after “employment income” insert “received in the part tax year”;

j

in paragraph (5) after “calculating earnings” insert “received in the part tax year”.

Annotations:
Commencement Information
I14

Sch. para. 14 in operation at 5.5.2016, see reg. 1

I1515

In regulation 5 (pension income)64—

a

in paragraph (1) after ““pension income” means” insert “any of the following received in or relating to the part tax year”;

b

in paragraph (2) in the first sentence and in the title of Table 2, after “pension income” insert “received in or relating to the part tax year”;

c

in paragraph (3) after “income tax purposes”, insert “in relation to the part tax year”.

Annotations:
Commencement Information
I15

Sch. para. 15 in operation at 5.5.2016, see reg. 1

I1616

In regulation 6 (trading income)65—

a

re-number the existing regulation as paragraph (1);

b

in paragraph (1) (as so re-numbered)—

i

in sub-paragraph (a) for “taxable profits for the tax year” substitute “actual or estimated taxable profits attributable to the part tax year”;

ii

in sub-paragraph (b) for “taxable profit for the” substitute “actual or estimated taxable profit attributable to the part tax”;

2

after paragraph (1) insert—

2

Actual or estimated taxable profits attributable to the part tax year (“the relevant trading income”) is to be calculated by reference to the basis period (determined by reference to the rules in Chapter 15 of Part 2 of ITTOIA) ending during the tax year in which the claimant made, or was treated as making, a claim for universal credit.

3

The relevant trading income is to be calculated by—

a

taking the figure for the actual or estimated taxable income earned in the basis period;

b

dividing that figure by the number of days in the basis period to give the daily figure; and

c

multiplying the daily figure by the number of days in the part tax year on which the trade, profession or vocation was carried on.

Annotations:
Commencement Information
I16

Sch. para. 16 in operation at 5.5.2016, see reg. 1

I1717

In regulation 7 (social security income)66—

a

in paragraph (1) after “social security income” insert “received in the part tax year”;

b

in paragraph (3) in the opening words and in the title of Table 3, after “social security income” insert “received in the part tax year”.

Annotations:
Commencement Information
I17

Sch. para. 17 in operation at 5.5.2016, see reg. 1

I1818

In regulation 8 (student income)67 after “in relation to a student” insert “, any of the following which is received in the part tax year”.

Annotations:
Commencement Information
I18

Sch. para. 18 in operation at 5.5.2016, see reg. 1

I1919

In regulation 10 (investment income)68—

a

in paragraph (1) after “gross amount” insert “received in the part tax year”;

b

in paragraph (1)(e) before “year” insert “part tax”;

c

in paragraph (2) in the opening words and in the title of Table 4, after “investment income” insert “received in the part tax year”.

Annotations:
Commencement Information
I19

Sch. para. 19 in operation at 5.5.2016, see reg. 1

I2020

In regulation 11(1) (property income)69—

a

omit “annual”;

b

after “taxable profits” insert “for the part tax year”.

Annotations:
Commencement Information
I20

Sch. para. 20 in operation at 5.5.2016, see reg. 1

I2121

In regulation 12(1) (foreign income)70 before “year” insert “part tax”.

Annotations:
Commencement Information
I21

Sch. para. 21 in operation at 5.5.2016, see reg. 1

I2222

In regulation 13 (notional income) after “means income” insert “received in the part tax year”.

Annotations:
Commencement Information
I22

Sch. para. 22 in operation at 5.5.2016, see reg. 1

I2323

In regulation 18 (miscellaneous income)71 after “means income” insert “received in the part tax year”.

Annotations:
Commencement Information
I23

Sch. para. 23 in operation at 5.5.2016, see reg. 1

Modifications to the Tax Credits (Income Thresholds and Determination of Rates) Regulations

I2424

Paragraphs 25 to 27 prescribe modifications to the application of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 200272 where regulation 11 of these Regulations applies.

Annotations:
Commencement Information
I24

Sch. para. 24 in operation at 5.5.2016, see reg. 1

I2525

In regulation 2 (interpretation)—

a

after the definition of “the income threshold” insert—

  • “part tax year” means a period of less than a year beginning with 6th April and ending with the date on which the award of a tax credit terminated;

b

in the definition of “the relevant income” insert “as modified by the Universal Credit (Transitional Provisions) Regulations (Northern Ireland) 2016” at the end.

Annotations:
Commencement Information
I25

Sch. para. 25 in operation at 5.5.2016, see reg. 1

I2626

In regulation 7(3) (determination of rate of working tax credit)73—

a

in Step 1, in the definition of “MR”, after “maximum rate” insert “(determined in the manner prescribed at the date on which the award of the tax credit terminated)”;

b

in Step 3—

i

in the definition of “I” before “tax year” insert “part”;

ii

in the definition of “N1” before “tax year” insert “part”.

Annotations:
Commencement Information
I26

Sch. para. 26 in operation at 5.5.2016, see reg. 1

I2727

In regulation 8(3) (determination of rate of child tax credit)74—

a

in Step 1, in the definition of “MR”, after “maximum rate” insert “(determined in the manner prescribed at the date on which the award of the tax credit terminated)”;

b

in Step 3—

i

in the definition of “I” before “tax year” insert “part”;

ii

in the definition of “N1” before “tax year” insert “part”.

Annotations:
Commencement Information
I27

Sch. para. 27 in operation at 5.5.2016, see reg. 1

Modifications to the Tax Credits (Claims and Notifications) Regulations

I2828

Paragraphs 29 to 34 prescribe modifications to the application of the Tax Credits (Claims and Notifications) Regulations 200275 where regulation 11 of these Regulations applies.

Annotations:
Commencement Information
I28

Sch. para. 28 in operation at 5.5.2016, see reg. 1

I2929

In regulation 4 (interpretation) omit paragraph (b)76.

Annotations:
Commencement Information
I29

Sch. para. 29 in operation at 5.5.2016, see reg. 1

I3030

Omit regulation 11 (circumstances in which claims to be treated as made)77.

Annotations:
Commencement Information
I30

Sch. para. 30 in operation at 5.5.2016, see reg. 1

I3131

Omit regulation 12 (further circumstances in which claims to be treated as made)78.

Annotations:
Commencement Information
I31

Sch. para. 31 in operation at 5.5.2016, see reg. 1

I3232

In regulation 13 (circumstances in which claims made by one member of a couple to be treated as also made by the other)—

a

in paragraph (1)79 after “prescribed by paragraph” omit “(2) or”;

b

omit paragraph (2)80.

Annotations:
Commencement Information
I32

Sch. para. 32 in operation at 5.5.2016, see reg. 1

I3333

In regulation 15(1)(c) (persons who die after making a claim)—

a

omit “the whole or” and “after the end of that tax year but”; and

b

for “section 18(1), (5), (6) or (9)” substitute “section 18(1) or (5)”.

Annotations:
Commencement Information
I33

Sch. para. 33 in operation at 5.5.2016, see reg. 1

I3434

In regulation 33 (dates to be specified in notices)81—

a

in paragraph (a) for the words from “not later than 31st July” to “if later”, substitute “not less than 30 days after the date on which the notice is given”;

b

omit paragraph (b) and the “and” which precedes it.

Annotations:
Commencement Information
I34

Sch. para. 34 in operation at 5.5.2016, see reg. 1

Modification to the Tax Credits (Payment by the Commissioners) Regulations

I3535

Paragraph 36 prescribes a modification to the application of the Tax Credits (Payment by the Commissioners) Regulations 200282 where regulation 11 of these Regulations applies.

Annotations:
Commencement Information
I35

Sch. para. 35 in operation at 5.5.2016, see reg. 1

I3636

Omit regulation 7 (prescribed circumstances for certain purposes)83.

Annotations:
Commencement Information
I36

Sch. para. 36 in operation at 5.5.2016, see reg. 1

Modification to the Tax Credits (Residence) Regulations

I3737

Paragraph 38 prescribes a modification to the application of the Tax Credits (Residence) Regulations 200384 where regulation 11 of these Regulations applies.

Annotations:
Commencement Information
I37

Sch. para. 37 in operation at 5.5.2016, see reg. 1

I3838

In regulation 3(5)(a) (circumstances in which a person is treated as not being in the United Kingdom)85, omit “under regulation 11 or 12 of the Tax Credits (Claims and Notifications) Regulations 2002 or otherwise”.