Tax Credits Act 2002

JurisdictionUK Non-devolved
Citation2002 c. 21


Tax Credits Act 2002

2002 Chapter 21

An Act to make provision for tax credits; to amend the law about child benefit and guardian's allowance; and for connected purposes.

[8th July 2002]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 Tax credits

Part 1

Tax credits

General

General

S-1 Introductory

1 Introductory

(1) This Act makes provision for—

(a) a tax credit to be known as child tax credit, and

(b) a tax credit to be known as working tax credit.

(2) In this Act references to a tax credit are to either of those tax credits and references to tax credits are to both of them.

(3) The following (which are superseded by tax credits) are abolished—

(a) children's tax credit under section 257AA of the Income and Corporation Taxes Act 1988 (c. 1),

(b) working families' tax credit,

(c) disabled person's tax credit,

(d) the amounts which, in relation to income support and income-based jobseeker's allowance, are prescribed as part of the applicable amount in respect of a child or young person, the family premium, the enhanced disability premium in respect of a child or young person and the disabled child premium,

(e) increases in benefits in respect of children under sections 80 and 90 of the Social Security Contributions and Benefits Act 1992 (c. 4) and sections 80 and 90 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7), and

(f) the employment credit under the schemes under section 2(2) of the Employment and Training Act 1973 (c. 50) and section 1 of the Employment and Training Act (Northern Ireland) 1950 (c. 29 (N.I.)) known as ‘New Deal 50plus’.

S-2 Functions of Board

2 Functions of Board

(1) Tax credits are to be under the care and management of the Board.

(2) Section 10 of the Exchequer and Audit Departments Act 1866 (c. 39) (gross revenues to be paid to Exchequer) is to be construed as allowing the Board to deduct payments for or in respect of tax credits before causing the gross revenues of their department to be paid to the account mentioned in that section.

(3) For the purposes of the Inland Revenue Regulation Act 1890 (c. 21) the definition of ‘inland revenue’ in section 39 of that Act is to be taken to include tax credits.

(4) The reference in section 4(1) of that Act (appointment of collectors, officers and other persons) to collecting, receiving, managing and accounting for inland revenue is to be taken to include a reference to paying and managing tax credits.

(5) The duties of the Board under section 13 of that Act (Board to keep accounts) are to include a duty to set forth in the accounts mentioned in that section—

(a) the amounts of the several payments made by them of or in respect of tax credits,

(b) the amounts of the expenses of paying and managing tax credits, and

(c) the amounts received by them in respect of tax credits,

distinguishing in each case between amounts relating to child tax credit and amounts relating to working tax credit.

(6) In any declaration for the purposes of section 6 of the Taxes Management Act 1970 (c. 9) (declarations on taking office), whether made before or after the commencement of this section, the reference to an offence relating to inland revenue is to be taken to include a reference to an offence relating to a tax credit.

S-3 Claims

3 Claims

(1) Entitlement to a tax credit for the whole or part of a tax year is dependent on the making of a claim for it.

(2) Where the Board—

(a) decide under section 14 not to make an award of a tax credit on a claim, or

(b) decide under section 16 to terminate an award of a tax credit made on a claim,

(subject to any appeal) any entitlement, or subsequent entitlement, to the tax credit for any part of the same tax year is dependent on the making of a new claim.

(3) A claim for a tax credit may be made—

(a) jointly by the members of a married couple or unmarried couple both of whom are aged at least sixteen and are in the United Kingdom, or

(b) by a person who is aged at least sixteen and is in the United Kingdom but is not entitled to make a claim under paragraph (a) (jointly with another).

(4) Entitlement to a tax credit pursuant to a claim ceases—

(a) in the case of a joint claim, if the persons by whom it was made could no longer jointly make a joint claim, and

(b) in the case of a single claim, if the person by whom it was made could no longer make a single claim.

(5) In this Part ‘married couple’ means a man and woman who are married to each other and are neither—

(a) separated under a court order, nor

(b) separated in circumstances in which the separation is likely to be permanent.

(6) In this Part ‘unmarried couple’ means a man and a woman who are not a married couple but are living together as husband and wife.

(7) Circumstances may be prescribed in which a person is to be treated for the purposes of this Part as being, or as not being, in the United Kingdom.

(8) In this Part—

‘joint claim’ means a claim under paragraph (a) of subsection (3), and

‘single claim’ means a claim under paragraph (b) of that subsection.

S-4 Claims: supplementary

4 Claims: supplementary

(1) Regulations may—

(a) require a claim for a tax credit to be made in a prescribed manner and within a prescribed time,

(b) provide for a claim for a tax credit made in prescribed circumstances to be treated as having been made on a prescribed date earlier or later than that on which it is made,

(c) provide that, in prescribed circumstances, a claim for a tax...

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