# The Tax Credits (Miscellaneous Amendments) Regulations 2006, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations amend the Tax Credits (Claims and Notifications) Regulations 2002 (S.I. 2002/2014), the Child Tax Credit Regulations 2002 (S.I. 2002/2007), the Tax Credits (Residence) Regulations 2003 (S.I. 2003/654), the Tax Credits (Residence)(Amendment) Regulations 2004 (S.I. 2004/1243), the Tax Credits (Definition and Calculation of Income) Regulations 2002 (S.I. 2002/2006) and the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005).
Regulation 1 provides for citation and commencement.
Regulation 2 amends the Tax Credits (Claims and Notifications) Regulations 2002 to change the date when a claim for Tax Credit is treated as made for the purposes of regulation 11 of those regulations, and to change the specified date in regulation 33 for the purposes of a notice under section 17 of the Tax Credits Act 2002 (c. 21).
Regulation 3 amends regulation 5 of the Child Tax Credit Regulations 2002 which prescribes conditions and maximum age for a person who has either left full-time education, or approved training.
Regulation 4 amends regulation 3 of the Tax Credits (Residence) Regulations 2003 (S.I. 2003/654) to reflect the fact that Council Directive 2004/38/EC has amended Council Regulation (EEC) No 1612/68 and has repealed Council Directives No 68/360/EEC and No 73/148/EEC.
Regulation 5 amends regulation 1(2) of the Tax Credits (Residence)(Amendment) Regulations 2004 (S.I. 2004/1243) to remove the date limitation on the effect of regulation 3(5) of the Tax Credits (Residence) Regulations 2003. This means that the time limit has been removed on the requirement to have a right to reside in the United Kingdom for the purposes of Part 1 of the Tax Credits Act 2002.
Regulation 6 introduces the amendments to the Tax Credits (Definition and Calculation of Income) Regulations 2002( “the Definition and Calculation Regulations”). The principal effect of the amendments to the Definition and Calculation Regulations is to update references to taxable income derived from tax legislation as a result of the entry into force of the Income Tax (Trading and Other Income) Act 2005 (c. 5) (“ITTOIA”).
Regulation 7 amends definitions in the Definition and Calculation Regulations.
Regulation 8 provides that for tax credit purposes a trading loss shall not be available unless the trade is carried on on a commercial basis and with a view to realising a profit.
Regulation 9 introduces a disregard in the calculation of employment income for the Return to Work Credit being piloted in Northern Ireland under section 1 of the Employment and Training Act (Northern Ireland) 1950 (c. 29).
Regulation 10 extends the definition of “pension income” to include certain lump sum payments following changes to pensions introduced by the Finance Act 2004 (c. 12) and the Finance (No. 2) Act 2005 (c. 22).
Regulation 11 updates the definition of trading income.
Regulation 12 updates references to any adult dependants' grant in relation to student income to take account of new student support regulations in England and Wales, namely the Education (Student Support) Regulations 2006 (S.I. 2006/119) and the Assembly Learning Grants and Loans (Higher Education) (Wales) Regulations 2006 (S.I. 2006/126 (W.19)).
Regulations 13 to 19 update references in relation to income which is exempt from income tax, and references in the definitions of various types of different income and in the provisions under which claimants are treated as having income by virtue of the Income Tax Acts as a result of changes introduced by ITTOIA.
Regulation 20 amends the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) (“the 2002 Regulations”). The amendments in paragraphs (2) and (3) substitute updated references to the most recent regulations dealing with Employment Zones, namely the Employment Zones Regulations 2003 (S.I. 2003/2438) and the Employment Zones (Allocation to Contractors) Pilot Regulations 2005 (S.I. 2005/1125). The amendments in paragraphs (4), (5) and (6) add child care agencies as defined in section 2 of the Regulation of Care (Scotland) Act 2001 (asp.8) and child care providers who have been approved by the Northern Ireland Child Care Approval Scheme (introduced by the Tax Credits (Approval of Home Child Care Providers) Scheme (Northern Ireland) 2006 (S.R. 2006 No. 64) to the list of eligible child care in regulation 14 of the 2002 Regulations.
These Regulations do not impose any new costs on business.

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Source: https://www.legislation.gov.uk/uksi/2006/766/note (the official version)
Page: https://openlegislation.uk/tax-credits-miscellaneous-amendments-regulations-2006/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.