The Tax Credits (Miscellaneous Amendments) (No. 3) Regulations 2010

These Regulations amend the Tax Credits (Definition and Calculation of Income) Regulations 2002 (S.I. 2002/2006) (“the Income Regulations”), the Tax Credits (Payments by the Commissioners) Regulations 2002 (S.I. 2002/2173) (“the Payments Regulations”), the Child Tax Credit Regulations 2002 (S.I. 2002/2007) (“the Child Tax Credit Regulations”), the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) (“the Entitlement Regulations”) and the Tax Credits (Claims and Notifications Regulations) 2002 (S.I. 2002/2014) (“the Claims Regulations”).

Regulations 2 to 4 amend the Income Regulations to omit items 5 and 7 of Table 2 contained in regulation 5(2) of the Income Regulations so that certain pensions under the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order 1983 (S.I. 1983/883) (“the Service Pensions Order”) are removed from the list of pensions, other payments and benefits that are disregarded in the calculation of pension income determined in accordance with regulation 5. The amendments, together with the consequential omission of the definition of “Service Pensions Order” in regulation 2(2) of the Income Regulations arise from the revocation of the Service Pensions Order by the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order 2006 (S.I. 2006/606).

Regulation 5 substitutes item 12 of Table 6 in regulation 19 of the Income Regulations so the payments in respect of travelling expenses described in that item are disregarded from the calculation of income for the purposes of regulation 3 of those Regulations.

Regulations 6 and 7 amend regulation 8 of the Payments Regulations by inserting paragraph (2B) and making paragraph (2) subject to that paragraph as well as paragraph (2A) so that, notwithstanding an election by a person to whom payment of tax credit or element is to be made to have such payment made each week or every 4 weeks, the Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”) may make the payment either each week or every four weeks as appears to them to be appropriate.

Regulations 8 and 9 amend paragraph (d) of the definition of “qualifying body” in regulation 2(1) of the Child Tax Credit Regulations, so that it also refers to Regulation (EC) No 883/2004 of the European Parliament and of the Council (OJ No L 166 30.4.04, p1-123).

Regulation 11 amends regulation 4(1) of the Entitlement Regulations to add a new category of person who may satisfy the second condition in paragraph (1) of regulation 4. This new category is a person who is aged at least 60 and undertakes at least 16 hours work per week.

Regulation 12 amends paragraph (3) of regulation 11 of the Entitlement Regulations to introduce a further exception to paragraph (2) of Regulation 11. This exception is a person who satisfies the conditions of new regulation 4(1)(d) (age 60 and works at least 16 hours per week) and who is also in receipt of the 50 plus element (which is referred to in regulation 3(1)(f) of the Entitlement Regulations).

Regulations 13 and 14 amend regulation 12 of the Claims Regulations (which sets out the circumstances in which a person or persons to whom a notice (a “section 17 notice”) under section 17 of the Tax Credits Act 2002 (c. 21) (“the Act”) is given will be treated, by virtue of that regulation, as making a claim for tax credit for the tax year following that to which the notice relates). Following the amendment to paragraph (7) to include a reference to paragraph (3), regulation 12 will not treat a person or persons as making a claim for tax credit where the circumstances described in any of the cases in paragraph (7) apply. The circumstances of the case described in sub-paragraph (c) are amended so that any person or persons to whom a section 17 notice is given may inform the Commissioners before the specified date that the person or persons do not wish to be treated as making a claim for tax credit for the tax year following that to which the notice relates. The insertion of sub-paragraphs (d) and (e) into paragraph (7) provide that no claim for tax credit pursuant to regulation 12 will be treated as made where a person or persons by whom a previous claim for tax credit has been made do not make a relevant request in response to a relevant notification given to them.

Regulation 15 inserts new paragraph (8) into regulation 12 of the Claims Regulations. It defines “relevant notification”, “relevant request” and “specified date” for the purpose of regulation 12.

A full and final Impact Assessment has not been produced for this instrument as a negligible impact on the private or voluntary sectors is foreseen.