Special rules affecting tax credit and universal credit claimants

I1I2I332Power to disqualify tax credit claimants from obtaining top-up payments

1

This section applies in relation to a person (“P”) if—

a

P, or a person who is P's partner, makes a claim (whether a single or a joint claim) that results in an award of a tax credit being made for a relevant period (see subsection (2)),

b

the claim is made during an entitlement period for which P or P's partner has made a valid declaration of eligibility,

c

there has not been a change of circumstances in relation to P or P's partner since the beginning of the entitlement period, and

d

P, or a person who is P's partner, makes a declaration of eligibility within the period of 12 months beginning with the day on which the claim was made.

2

In subsection (1)(a) “relevant period”, in relation to an entitlement period, means a period that includes the whole or any part of the entitlement period.

3

If this section applies in relation to a person, HMRC may give the person a warning notice.

4

A warning notice is a notice stating that, if this section or section 33 (power to disqualify universal credit claimants from obtaining top-up payments) applies in relation to the person at any time during the period of 4 years beginning with the day on which the notice is given, HMRC may give the person a disqualification notice (see section 34).

5

Regulations may make provision—

a

about what is, or is not, to be regarded as a change of circumstances in relation to a person for the purposes of this section;

b

specifying cases in which something which would otherwise be a change of circumstances is not to be treated as such for the purposes of this section.

6

Regulations may amend subsection (1)(d) so as to substitute a different period for the period for the time being specified there.

7

In this section “joint claim” and “single claim” have the same meaning as in the Tax Credits Act 2002.