3(1)This paragraph applies if no part of either partner’s income for the year falls within section 1(2)(b).
(2)If the lower-earning partner makes a claim for a children’s tax credit for the year in respect of a relevant child—
(a)paragraph 2 above shall not apply, and
(b)in calculating the credit for each partner, the amount mentioned in section 257AA(2) shall be halved.
[F1(2A)If a relevant child is a qualifying baby the reference in sub-paragraph (2)(b) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.]
(3)If the partners make an election under this sub-paragraph—
(a)paragraph 2 above shall not apply, and
(b)the higher-earning partner shall not be entitled to a children’s tax credit for the year in respect of a relevant child.
Textual Amendments
F1Sch. 13B para. 3(2A) inserted (with effect in accordance with s. 53(6) of the amending Act) by Finance Act 2001 (c. 9), Sch. 11 para. 2