2009 No. 2887

Tax Credits

The Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2009

Made

Laid before Parliament

Coming into force in accordance with regulation 1

These Regulations are made by the Treasury and the Commissioners for Her Majesty’s Revenue and Customs.

The powers exercised by Treasury are those contained in sections 7(8) and (9), 11(1), (5) and (6), 12(3) and (4), 65(1) and (7) and 67 of the Tax Credits Act 20021.

The powers exercised by the Commissioners for Her Majesty’s Revenue and Customs are those contained in sections 4(1)2, 65(2) and (7) and 67 of that Act3.

Citation and commencement1

These Regulations may be cited as the Tax Credits (Miscellaneous Amendments) (No. 2) Regulations 2009 and shall come into force—

a

for all purposes other than those of regulation 3 on 21st November 2009; and

b

for the purposes of regulation 3 on 6th April 2010.

Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

2

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 20024 are amended as follows.

3

1

Amend regulation 11 (second adult element) as follows.

2

In paragraph (4) for “section 115(9)(a)” substitute “section 115(9)”.

3

After paragraph (4) insert—

5

Paragraph (4)(b) does not apply where the claimant subject to immigration control is a person to whom Case 4 of regulation 3(1) of the Tax Credits (Immigration) Regulations 20035 applies.

4

1

Amend regulation 14 (child care charges) as follows.

2

In paragraph (1A).

a

in sub-paragraph (d) for “regulation 14(2)(f)(ii)” substitute “regulation 14(2)(f)(vii)”,

b

in sub-paragraph (e)—

i

after “a foster parent” add “, a foster carer or a kinship carer”, and

ii

for “that foster parent is fostering” substitute “that person is fostering or is looking after as the child’s kinship carer”.

3

In paragraph (1B), after sub-paragraph (b), insert—

c

“foster parent” in relation to a child—

i

in relation to England, means a person with whom the child is placed under the Fostering Services Regulations 20026;

ii

in relation to Wales, means a person with whom the child is placed under the Fostering Services (Wales) Regulations 20037;

iii

in relation to Northern Ireland, means a person with whom the child is placed under the Foster Placement (Children) Regulations (Northern Ireland) 19968; and

d

“foster carer” and “kinship carer” have the meanings given in regulation 2 of the Looked After Children (Scotland) Regulations 20099.

4

In paragraph (2)

a

In sub-paragraph (b) for paragraph (iii) substitute—

iii

by a foster carer in relation to a child other than one whom that person is fostering;

b

in sub-paragraph (c)(iv) omit “under the Foster Placement (Children) Regulations (Northern Ireland) 1996”;

c

in sub-paragraph (f)(v) omit “under the Fostering Services (Wales) Regulations 2003”.

Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002

5

The Tax Credits (Definition and Calculation of Income) Regulations 200210 are amended as follows.

6

In regulation 4(4) (employment income) in item 16 of Table 1—

a

at the end of paragraph (d) omit “or”,

b

at the end of paragraph (e) insert—

, or

f

under the Future Capital pilot scheme.

7

1

Regulation 19 (general disregards in the calculation of income) is amended as follows.

2

In item 3 of Table 6—

a

at the end of paragraph (a) omit “or”,

b

after paragraph (b) insert—

; or

c

the Steps to Work Programme specified in regulation 75(1)(a)(vi) of the Jobseeker’s Allowance Regulations (Northern Ireland) 199611.

3

In item 2 of column 1 of Table 7—

a

at the end of paragraph (c) omit “or”,

b

after paragraph (d) insert—

; or

e

child care expenses under the Steps to Work Programme specified in regulation 75(1)(a)(vi) of the Jobseeker’s Allowance Regulations (Northern Ireland) 1996.

Amendment of the Tax Credits (Claims and Notifications) Regulations 20028

1

The Tax Credits (Claims and Notifications) Regulations 200212 are amended as follows.

2

In the following places for “three months” or “3 months” (as the case may be) substitute “93 days”—

a

in the heading to regulation 7;

b

in regulation 7(2)(a);

c

in regulation 8(2)(b);

d

in regulation 8(3)(b).

Dave WattsTony CunninghamTwo of the Lords Commissioners of Her Majesty’s Treasury
Mike ElandSteve LameyTwo of the Commissioners for Her Majesty’s Revenue and Customs
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (“the Entitlement Regulations”), the Tax Credits (Definition and Calculation of Income) Regulations 2002 (“the Income Regulations”) and the Tax Credits (Claims and Notifications) Regulations 2002 (“the Claims Regulations”).

Regulations 2 to 4 amend the Entitlement Regulations.

Regulation 3 amends regulation 11 of the Entitlement Regulations. It amends regulation 11(4) to provide that the second adult element of working tax credit is denied in the case of joint claims made by a couple who are not responsible for a child or qualifying young person and where one claimant is subject to immigration control. It inserts a new regulation 11(5) to provide that this restriction is not applicable to nationals of those countries which are governed by the European Convention on Social and Medical Assistance 1953 or the Council of Europe Social Charter 1961 (Croatia, the former Yugoslav Republic of Macedonia and Turkey). The text of both of these documents may be located at the website of the Treaty Office of the Council of Europe (www.conventions.coe.int).

Regulation 4 amends regulation 14 of the Entitlement Regulations. It makes a technical correction to regulation 14(1A)(d) of the Entitlement Regulations. It amends regulation 14(1A)(e) of the Entitlement Regulations so as to provide that relevant childcare charges which currently do not include charges in respect of care provided by a foster parent in respect of a child whom that foster parent is fostering, will also not include charges in respect of care provided by a foster carer or a kinship carer. It also provides definitions for “foster parent”, “foster carer” and “kinship carer”. It amends the Entitlement Regulations to reflect the replacement of the Fostering of Children (Scotland) Regulations 1996 by the Looked After Children (Scotland) Regulations 2009 with effect from 28 September 2009. Lastly, it removes two references to the definition of a foster parent in Northern Ireland and Wales, which are now superfluous following the insertion of a general definition of “foster parent”.

Regulations 5 to 7 amend the Income Regulations.

Regulation 6 amends Table 1 in regulation 4, which lists payments and benefits that are disregarded in the calculation of employment income. It inserts a new sub-paragraph which provides that payments by the Department for Work and Pensions under its Future Capital pilot scheme are disregarded in calculating employment income.

Regulation 7 introduces changes to Tables 6 and 7 of regulation 19 of the Income Regulations, which provide that mandatory top-up payments and payments of child care expenses under the Steps to Work programme in Northern Ireland are disregarded in calculating income.

Regulation 8 amends the Claims Regulations. It alters various references in those Regulations from either “three months” or “3 months” to “93 days”.

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.