Amendment of the Tax Credits (Payments by the Commissioners) Regulations 20025
1
The Tax Credits (Payments by the Commissioners) Regulations 200216 are amended as follows.
2
In regulation 12A (recovery of overpayments of tax credit from other payments of tax credit)—
a
in paragraph (2)(c), for “25%” substitute “the income-related percentage”;
b
After regulation 12A(2) insert—
2A
In paragraph (2)(c), “the income-related percentage” means—
a
50% if annual income exceeds £20,000; and
b
25% in any other case.
2B
For the purposes of paragraph (2A)(a), “annual income”—
a
means the annual income of the person or, in the case of a joint claim, the aggregate annual income of the persons, mentioned in paragraph (2)(c); and
b
is to be taken to be the amount that the Commissioners are for the time being treating that income to be for the purposes of Part 1 of the Act, regardless of whether that amount is also “the relevant income” (as defined by section 7(3) of the Act) on which the entitlement to the tax credit mentioned in paragraph (2)(c) is dependent.