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Paragraph 7E Tax credits overpayment debts and self-assessment debtsF1

(1)

In this paragraph—

  • “self-assessment debt” means any debt which—

    1. (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); and

    2. (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).

(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”.

Annotations

Textual amendments

F1

Sch. 9 para. 7E inserted (30.4.2010) by The Social Security (Claims and Payments) Amendment (No. 2) Regulations 2010 (S.I. 2010/870), regs. 1, 2(2)(b)

Notes on the whole SI

Textual amendments

F1

Words in Instrument substituted (29.11.1999) by The Social Security Act 1998 (Commencement No. 12 and Consequential and Transitional Provisions) Order 1999 (S.I. 1999/3178), Sch. 6 para. 1 (with reg. 3(1)(b), Schs. 21-23)