Statutory Instruments

2002 No. 2007

TAX CREDITS

The Child Tax Credit Regulations 2002

Made

30th July 2002

Coming into force in accordance with regulation 1

M1 Whereas a draft of this instrument, which contains the first regulations made under section 9 of the Tax Credits Act 2002, has been laid before, and approved by resolution of, each House of Parliament:

Now, therefore, the Treasury, in exercise of the powers conferred on them by sections 8, 9, 65 and 67 of the Tax Credits Act 2002M2, hereby make the following Regulations:

Modifications etc. (not altering text)

Marginal Citations

M2Section 67 is cited because of the meaning ascribed to “prescribed”.

Citation, commencement and effectU.K.

1.  These Regulations may be cited as the Child Tax Credit Regulations 2002 and shall come into force—

(a)for the purpose of enabling claims to be made, on 1st August 2002;

(b)for the purpose of enabling awards to be made, on 1st January 2003; and

(c)for all other purposes on 6th April 2003;

and shall have effect for the tax year beginning on 6th April 2003 and subsequent tax years.

InterpretationU.K.

2.—(1) In these Regulations, unless the context otherwise requires—

(2) In the application of these Regulations to Northern Ireland, a reference to a provision of an enactment which applies only to Great Britain or England and Wales, shall be construed, so far as necessary, as including a reference to the corresponding enactment applying to Northern Ireland.

Textual Amendments

F8Words in reg. 2 omitted (6.4.2003) by virtue of The Child Tax Credit (Amendment) Regulations 2003 (S.I. 2003/738), regs. 1, 3(b)

Marginal Citations

Circumstances in which a person is or is not responsible for a child or qualifying young personU.K.

3.—(1) For the purposes of child tax credit the circumstances in which a person is or is not responsible for a child or qualifying young person shall be determined in accordance with the following Rules.

(2) Where—

(a)a claimant is treated as responsible for a child or qualifying young person by virtue of the preceding Rules, and

(b)the child or qualifying young person has a child of his or her own, normally living with him or her,

the claimant shall also be treated as responsible for, and as having made a claim for child tax credit in respect of, the child of the child or qualifying young person (but without prejudice to the facts as to which of them is mainly responsible for that child).

Textual Amendments

F19Words in reg. 3(1) rule 2 para. 2.1(a)(ii) omitted (5.12.2005) by virtue of The Civil Partnership Act 2004 (Tax Credits, etc.) (Consequential Amendments) Order 2005 (S.I. 2005/2919), arts. 1, 4(3)

F23Words in reg. 3(1) omitted (16.8.2007) by virtue of The Child Tax Credit (Amendment) Regulations 2007 (S.I. 2007/2151), regs. 1, 3(a)

Modifications etc. (not altering text)

C2Reg. 3 applied (for specified purposes and with effect in accordance with reg. 1 of the amending S.I., in force in so far as not already in force and with effect in accordance with reg. 1 of the amending S.I.) by The Tax Credits (Definition and Calculation of Income) Regulations 2002 (S.I. 2002/2006), regs. 1, 2(3)

Marginal Citations

M19S.I. 1976/965: regulation 3 was substituted by regulation 3 of S.I. 2000/2891.

[F35Period for which a person who attains the age of sixteen is a qualifying young personU.K.

4.—(1) [F36Subject to paragraph (1A), a] person who attains the age of sixteen is a qualifying young person from the date on which that person attained that age until 31st August which next follows that date.

[F37(1A) A person who attains the age of sixteen on 31st August is a qualifying young person from the date on which that person attained that age.]

(2) Paragraph (1) is subject to regulation 5 but as if there were no requirement to satisfy the first condition specified in paragraph (3) of that regulation.]

[F38(2A) Paragraph (1A) is subject to regulation 5.]

Textual Amendments

Maximum age and prescribed conditions for a qualifying young personU.K.

5.—(1) For the purposes of Part 1 a person ceases to be a qualifying young person (unless disqualified earlier under the following paragraphs) on the date on which he attains the age of [F39twenty].

(2) A person who is not a child, but has not attained the age of [F40twenty] years, is a qualifying young person for any period during which the following conditions are satisfied with regard to him [F41(and once a person falls within the terms of paragraph (3)(b), he shall be treated as having satisfied the first condition from the [F42relevant leaving date] mentioned in that paragraph)].

(3) The first condition is that he is F43...—

(a)receiving full-time education, not being—

(i)advanced education, or

(ii)education received by that person by virtue of his employment or of any office held by him; F44...

[F45(ab)undertaking approved training [F46, is enrolled or has been accepted to undertake such training,] which is not provided [F47by means of a contract of employment]; or]

(b)under the age of eighteen years and—

[F48(i)[F49he ceased to receive full-time education or to undertake approved training (the date of that event being referred to as “the relevant leaving date”);]

(ii)within 3 months of the [F50relevant leaving date], he has notified the Board (in the manner prescribed by regulation 22 of the Tax Credits (Claims and Notifications) Regulations 2002) that he is registered for work or training with [F51a qualifying body] , and

(iii)not more than 20 weeks has elapsed since the [F52relevant leaving date].]

[F53(3A) A person who has attained the age of nineteen years satisfies paragraph (3)(a) or (ab) only where the course of education or training began before he attained that age [F54, or he enrolled or was accepted to undertake that course before he attained that age].]

(4) The second condition is that the period in question is not (and does not include)—

(a)a week in which he (having ceased to receive full-time education [F55or approved training]) becomes engaged in remunerative work [F56or];

F57(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)a period in respect of which that person receives income support [F58, income-related employment and support allowance payable under Part 1 of the Welfare Reform Act 2007] [F59,] income-based jobseeker’s allowance within the meaning of section 1(4) of the Jobseekers Act 1995 M21 [F60or universal credit under Part 1 of the Welfare Reform Act 2012].

(5) [F61For the purposes of paragraphs (3) and (4) a person shall be treated as being in full-time education if full-time education is received by that person by undertaking a course—

(a)at a school or college, or

(b)where that person has been receiving that education prior to attaining the age of sixteen, elsewhere, if approved by the Board,]

where in pursuit of that course, the time spent receiving instruction or tuition, undertaking supervised study, examination or practical work or taking part in any exercise, experiment or project for which provision is made in the curriculum of the course, exceeds or exceeds on average 12 hours a week in normal term-timeF62....

(6) In calculating the time spent in pursuit of the course, no account shall be taken of time occupied by meal breaks or spent on unsupervised study.

[F63(7) In determining whether a person is undertaking a course of full-time education or approved training, there shall be disregarded any interruption—

(a)for a period of up to 6 months, whether beginning before or after the person concerned attains age 16, to the extent that it is reasonable in the opinion of the Board to do so; and

(b)for any period due to illness or disability of the mind or body of the person concerned provided that it is reasonable in the opinion of the Board to do so.]

Textual Amendments

F44Word in reg. 5(3)(a) omitted (6.4.2006) by virtue of The Child Tax Credit (Amendment) Regulations 2006 (S.I. 2006/222), regs. 1(1), 4(4)(b)

F48Reg. 5(3)(b)(i)-(iii) substituted (6.4.2003) by The Child Tax Credit (Amendment) Regulations 2003 (S.I. 2003/738), regs. 1, 5

F62Words in reg. 5(5) omitted (16.8.2007) by virtue of The Child Tax Credit (Amendment) Regulations 2007 (S.I. 2007/2151), regs. 1, 4(c)

Marginal Citations

Entitlement to child tax credit after death of child or qualifying young personU.K.

6.  If—

(a)a child or qualifying young person dies, and

(b)a person is (or would, if a claim had been made, have been) entitled to child tax credit in respect of the child or qualifying young person immediately before the death,

that person shall be entitled to child tax credit in respect of the child or qualifying young person for the period of eight weeks immediately following the death or, in the case of a qualifying young person, until the date on which he or she would have attained the age of [F64twenty], if earlier.

Textual Amendments

Modifications etc. (not altering text)

C4Reg. 6 applied (for specified purposes and with effect in accordance with reg. 1 of the amending S.I., in force in so far as not already in force and with effect in accordance with reg. 1 of the amending S.I.) by The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005), regs. 1, 19(2)

Determination of the maximum rate at which a person or persons may be entitled to child tax creditU.K.

7.—(1) In the following paragraphs—

(a)in the case of a single claim (but not a joint claim), the person making the claim is referred to as the “claimant”; and

(b)in the case of a joint claim, the members of the F65... couple making the claim are referred to as the “joint claimants”.

(2) The maximum rate at which a claimant or joint claimants may be entitled to child tax credit shall be the aggregate of—

(a)the family element of child tax credit, and

(b)an individual element of child tax credit, in respect of each child or qualifying young person for whom—

(i)the claimant, or

(ii)either or both of the joint claimants,

as the case may be, is or are responsible.

[F66(3) The family element of child tax credit is £545.]

(4) The individual element of child tax credit for any child or qualifying young person referred to in paragraph (2)(b) above—

(a)where the child is disabled, is [F67£5,735];

(b)where the child is severely disabled, is [F68£6,955];

(c)in the case of any other child, is [F69£2,720];

(d)where the qualifying young person is disabled, is [F70£5,735];

(e)where the qualifying young person is severely disabled, is [F71£6,955]; and

(f)in the case of any other qualifying young person, is [F72£2,720].

Textual Amendments

F67Word in reg. 7(4)(a) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 2(2)(a)

F68Word in reg. 7(4)(b) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 2(2)(b)

F69Word in reg. 7(4)(c) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 2(2)(c)

F70Word in reg. 7(4)(d) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 2(2)(d)

F71Word in reg. 7(4)(e) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 2(2)(e)

F72Word in reg. 7(4)(f) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 2(2)(f)

Prescribed conditions for a disabled or severely disabled child or qualifying young personU.K.

8.—(1) For the purposes of section 9 of the Act a child or qualifying young person—

(a)is disabled if he satisfies the requirements of paragraph (2); and

(b)is severely disabled if he satisfies the requirements of paragraph (3) [F73or (4)] [F74or (5)].

(2) A person satisfies the requirements of this paragraph if—

(a)disability living allowance is payable in respect of him, or has ceased to be so payable solely because he is a patient; or

(b)he is—

(i)registered as blind in a register compiled by a local authority under section 29 of the National Assistance Act 1948 (welfare services) M22,

(ii)in Scotland, has been certified as blind [F75and in consequence is registered as blind] in a register maintained by or on behalf of [F76a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994] M23), or

(iii)in Northern Ireland, has been certified as blind and in consequence is registered as blind in a register maintained by or on behalf of a Health and Social Services Board; or

(c)he ceased to be so registered or certified as blind within the 28 weeks immediately preceding the date of claim [F77; or

(d)personal independence payment is payable in respect of that person, or would be so payable but for regulations made under section 86(1) (hospital in-patients) of the Welfare Reform Act 2012].

(3) A person satisfies the requirements of this paragraph if the care component of disability living allowance—

(a)is payable in respect of him, or

(b)would be so payable but for either a suspension of benefit in accordance with regulations under section 113(2) of the Contributions and Benefits Act M24 or an abatement as a consequence of hospitalisation,

at the highest rate prescribed under section 72(3) of that Act.

[F78(4) A person satisfies the requirements of this paragraph if the daily living component of personal independence payment—

(a)is payable in respect of that person, or

(b)would be so payable but for regulations made under section 86(1) (hospital in-patients) of the Welfare Reform Act 2012,

at the enhanced rate under section 78(2) of that Act.]

[F79(5) A person satisfies the requirements of this paragraph if an armed forces independence payment is payable in respect of him.]

Textual Amendments

Marginal Citations

Jim Fitzpatrick

John Heppell

Two of the Lords Commissioners of Her Majesty’s Treasury

Explanatory Note

(This note is not part of the Regulations)

The Tax Credits Act 2002 (“the Act”) introduces new tax credits—child tax credit and working tax credit—which will be available from 6th April 2003.

Section 8 of the Act provides that entitlement of a person or persons to child tax credit is dependent on him, or (in the case of a joint claim) either or both of them, being responsible for a child or qualifying young person. These Regulations provide the meaning of “responsible” and set out ages and qualifying conditions for children and qualifying young persons. They also set out the circumstances in which child tax credit is paid for up to eight weeks after a child or qualifying young person has died.

Section 9 of the Act provides for the determination of the maximum rate of child tax credit. Subsection (2) of that section provides that the determination must include first the family element of child tax credit and, secondly, an individual element of child tax credit in respect of each child or qualifying young person for whom the claimant or (in the case of a joint claim) either or both of the joint claimants is or are responsible.

Subsection (5) of section 9 provides that the amount of those elements may vary according to the age of the child or qualifying young person or otherwise, and must be subject to cumulative increases where he or she is disabled or severely disabled.

Regulations 1 and 2 provide for the citation, commencement and effect of the Regulations, and for interpretation.

Regulation 3 determines the circumstances in which a person is or is not responsible for a child or qualifying young person, for child tax credit purposes.

Regulation 4 provides for a person who has attained the age of 16 years to remain a “child” for the purposes of child tax credit and working tax credit until the 1st September following their sixteenth birthday.

Regulation 5 provides for the maximum age for a qualifying young person (the date on which he or she attains 19 years), and the conditions which a person who is no longer a child but is under 19 has to fulfil to be a qualifying young person.

Regulation 6 prescribes the circumstances in which a person is entitled to Child Tax Credit for a child or qualifying young person who has died.

Regulation 7 prescribes the maximum rate at which a person or persons may be entitled to Child Tax Credit.

Regulation 8 defines “disabled” and “severely disabled” for the purposes of section 9 of the Act.

A regulatory impact assessment in respect of the Act has been prepared and placed in the Library of each House of Parliament. A copy can be found on the Inland Revenue website (www.inlandrevenue.gov.uk).