Other enforcement powers
I1I252Deduction of recoverable amounts from tax credit awards
1
This section applies where, as a result of a review of, or an appeal against, a tax credits decision—
a
a person is required to pay an amount (“the relevant debt”) to HMRC under section 35 or 36, and
b
an amount of tax credit (“the award”) is payable to the person or to the person and the person's partner jointly.
2
The relevant debt may be deducted from the award before it is paid.
3
The requirement to pay the relevant debt is discharged to the extent that it is deducted from the award under this section.
4
In this section “tax credits decision” means a decision not to make an award of a tax credit or to terminate such an award.
5
This section ceases to have effect when the repeal of Part 1 of the Tax Credits Act 2002 made by Schedule 14 to the Welfare Reform Act 2012 has fully come into force.