“Tax credits overpayment debts and self-assessment debts7E.

(1)

In this paragraph—

“self-assessment debt” means any debt which—

(a)

has arisen from submission of a self-assessment to Her Majesty’s Revenue and Customs under section 9 of the Taxes Management Act 1970 (returns to include self-assessment)5; and

(b)

is recoverable under Part 6 of that Act;

“tax credits overpayment debt” means any debt which is recoverable under section 29 of the Tax Credits Act 2002 (recovery of overpayments)6.

(2)

Where the conditions set out in sub-paragraph (3) are met, the Secretary of State may deduct from a specified benefit to which the beneficiary is entitled a sum which is up to a maximum of 3 times 5 per cent of the personal allowance for a single claimant aged not less than 25 and pay that sum to Her Majesty’s Revenue and Customs towards discharge of any outstanding tax credits overpayment debt or self-assessment debt owed by the beneficiary to Her Majesty’s Revenue and Customs.

(3)

The conditions mentioned in sub-paragraph (2) are—

(a)

that the beneficiary has given written consent to Her Majesty’s Revenue and Customs for deductions to be made from a specified benefit towards discharge of any outstanding tax credits overpayment debt or self-assessment debt owed by the beneficiary to Her Majesty’s Revenue and Customs; and

(b)

no sum is being deducted under this paragraph.

(4)

The Secretary of State shall cease making deductions from a specified benefit under this paragraph if—

(a)

there is no longer sufficient entitlement to a specified benefit to enable deductions to be made;

(b)

entitlement to all specified benefits has ceased;

(c)

the beneficiary withdraws consent for the Secretary of State to make deductions from a specified benefit; or

(d)

the beneficiary is no longer liable to repay any tax credits overpayment debt or self-assessment debt.

(5)

The Secretary of State shall notify the beneficiary in writing of the total sums deducted under this paragraph—

(a)

on receipt of a written request for such information from the beneficiary; or

(b)

on the termination of deductions.

(6)

Where a deduction is made under this paragraph from a specified benefit, paragraph 8 (maximum amount of payment to third parties) is to have effect as if—

(a)

in sub-paragraph (1) for “and 7A” there were substituted “, 7A and 7E”; and

(b)

in sub-paragraph (2) for “and 7D” there were substituted “, 7D and 7E”.”;