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The Tax Credits (Payments on Account, Overpayments and Recovery) (Amendment) Regulations 1999

S.I. 1999/2571 · Made 14 September 1999

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

SOCIAL SECURITY

TAXES

Made 14th September 1999

Laid before Parliament 14th September 1999

Coming into force 5th October 1999

The Commissioners of Inland Revenue, in exercise of the powers conferred by sections 5(1), 7(2), 71, 74 and 189 of the Social Security Adminstration Act 1992f1 and now vested in themf2, hereby make the following Regulations:

Annotations to the whole text

Footnotes

f1

1992 c. 5; section 5 was amended by paragraph 39 of Schedule 2 to the Jobseekers Act 1995 (c. 18) and paragraph 5(1) of Schedule 6 to the Social Security Act 1998 (c. 14). Section 71 was amended by section 1 of the Social Security (Overpayments) Act 1996 (c. 51), section 32(1) of, and paragraph 48 of Schedule 2 and Schedule 3 to, the Jobseekers Act 1995, and paragraph 10 of Schedule 2 to the Tax Credits Act 1999 (c. 10). Section 189 was amended by paragraph 109 of Schedule 7 to the Social Security Act 1998 and paragraphs 20 and 27 of Schedule 2 to the Tax Credits Act 1999.

f2

See sections 2(1)(c) and 19(1) of, and paragraphs 7(b), 20 and 27 of Schedule 2 to, the Tax Credits Act 1999.

Contents

  1. 1Citation, commencement and effect
  2. 2Interpretation
  3. 3Amendments to the principal Regulations
  4. 4Amendments to the principal Regulations
  5. 5Amendments to the principal Regulations
  6. 6Amendments to the principal Regulations
  7. 7Amendments to the principal Regulations
  8. 8Amendments to the principal Regulations
  9. 9Amendments to the principal Regulations
  10. 10Amendments to the principal Regulations
  11. 11Amendments to the principal Regulations
  12. 12Amendments to the principal Regulations
  13. 13Amendments to the principal Regulations
  14. 14Amendments to the principal Regulations
  15. Signature
  16. Explanatory note

1Citation, commencement and effect

(1)

These Regulations may be cited as the Tax Credits (Payments on Account, Overpayments and Recovery) (Amendment) Regulations 1999 and shall come into force on 5th October 1999 immediately after the coming into force of section 2 of the Tax Credits Act 1999.

(2)

These Regulations have effect—

(a)

with respect only to tax credit, and

(b)

with respect to any period, for which tax credit is payable to a person by virtue of section 128(3) or 129(6) of the Social Security Contributions and Benefits Act 1992f1, commencing on or after 5th October 1999.

2Interpretation

In these Regulations unless the context otherwise requires—

  • “the principal Regulations” means the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988f1 and “regulation” means a regulation of the principal Regulations;

  • “tax credit” means working families' tax credit or disabled person’s tax credit, within the meanings in section 1(1) of the Tax Credits Act 1999.

3Amendments to the principal Regulations

In regulation 1(2)f1—

(a)

for the definition of “adjudicating authority” there shall be substituted—

  • ““adjudicating authority” means, as the case may require, the Board, an officer of the Board, an appeal tribunal constituted under section 7 of the Social Security Act 1998, the Chief Social Security Commissioner or any other Social Security Commissioner, or a tribunal consisting of three or more of such Commissioners in accordance with section 16(7) of that Act;;”

(b)

in the definition of “benefit” for the words “family credit” there shall be substituted the words “disabled person’s tax credit, working families' tax credit”;

(c)

after the definition of “benefit” there shall be inserted—

  • ““the Board” means the Commissioners of Inland Revenue;;”

(d)

for the definition of “disability working allowance” there shall be substituted—

  • ““disabled person’s tax credit” means a disabled person’s tax credit under section 129 of the Contributions and Benefits Act and, in relation to things done, or falling to be done, prior to 5th October 1999, shall include a reference to disability working allowance;;”

(e)

the definition of “family credit” shall be omitted;

(f)

at the end there shall be added—

  • ““start notification” means a notification of entitlement to tax credit furnished to an employer by the Board, referred to in section 6(2)(a) of the Tax Credits Act 1999;

  • “tax credit” means working families' tax credit or disabled person’s tax credit;

  • “working families' tax credit” means working families' tax credit under section 128 of the Contributions and Benefits Act and, in relation to things done, or falling to be done, prior to 5th October 1999, shall include a reference to family credit.”

4Amendments to the principal Regulations

(1)

Regulation 2f1 is amended as follows.

(2)

In paragraph (1)—

(a)

for the words “the Secretary of State may, in his discretion” there shall be substituted the words “the Board may, in their discretion”;

(b)

for the word “him” there shall be substituted the word “them”;

(c)

in sub-paragraph (b) for the word “review” there shall be substituted the words “revision, supersession”.

(3)

In paragraph (1A) for the words “the Secretary of State” there shall be substituted the words “the Board”.

5Amendments to the principal Regulations

(1)

Regulation 3f1 is amended as follows.

(2)

At the beginning there shall be inserted “(1)” and in the paragraph (1) so formed, for the word “Where” where it first appears there shall be substituted the words “Subject to paragraph (2), where”.

(3)

At the end of paragraph (1) so formed there shall be added—

“(2)

Where the interim payment mentioned in paragraph (1)(a) is a payment on account of tax credit, paragraph 1(a), but not paragraph 1(b), shall apply with the modification that, for the words “Secretary of State” there is substituted the word “Board”.”

6Amendments to the principal Regulations

In Regulation 4f1 after paragraph (4) there shall be added—

“(5)

Where the interim payment is a payment on account of tax credit paragraphs (2) to (4) shall apply with the modification that for references to “the Secretary of State” there shall be substituted references to “the Board”.”.

7Amendments to the principal Regulations

(1)

Regulation 5 is amended as follows.

(2)

In paragraph (1) after the words “Subject to” there shall be added the words “paragraphs (1A) and (2A) and”.

(3)

After paragraph (1) there shall be inserted—

“(1A)

In paragraph (1) the reference to “any sum paid” shall, in relation to tax credit, include a reference to any amount or calculation of tax credit payable in respect of a period prior to the date of the subsequent determination, which is included in a start notification given by the Board to an employer, and for the payment of which the employer remains responsible.”

(4)

In paragraph (2)—

(a)

for the word “reversed” in the heading to Case 1 there shall be substituted the word “superseded”;

(b)

for the words “on a review” (in Case 1) there shall be substituted the words “or superseded”;

(c)

for the words “determined, on review or appeal” (in Case 2) there shall be substituted the words “decided, on a revision, supersession or appeal”.

(5)

After paragraph (2) there shall be inserted—

“(2A)

In paragraph (2), Case 2 shall not apply where either—

(a)

the sum paid under the original award, or

(b)

the subsequent decision on the revision, supersession or appeal,

referred to in that Case (but not both) is or relates to tax credit.”

8Amendments to the principal Regulations

In regulation 8(1) sub-paragraphs (c) and (h)f1 shall be omitted.

9Amendments to the principal Regulations

(1)

Regulation 11 is amended as follows.

(2)

In paragraph (1) for the word “Where” there shall be substituted the words “Subject to paragraph (4), where”.

(3)

After paragraph (3) there shall be added—

“(4)

Where the payment mentioned in paragraph (1) is a payment of tax credit, paragraphs (1) and (2) shall apply with the modifications that—

(a)

in paragraph (1) for the words “Secretary of State's” there is substituted the word “Board's”, and

(b)

in paragraph (2) for the words “Secretary of State” there is substituted the word “Board”.”

10Amendments to the principal Regulations

In regulation 12—

(a)

for the words “variation or revision” there shall be substituted the words “variation, revision or supersession”;

(b)

for the words “reviewing and revising” there shall be substituted the words “revising or superseding”.

11Amendments to the principal Regulations

(1)

Regulation 13 is amended as follows.

(2)

At the beginning there shall be inserted “(1)” and in the paragraph (1) so formed, for the word “In” where it first appears there shall be substituted the words “Subject to paragraph (2), in”.

(3)

After paragraph (1) so formed there shall be added—

“(2)

Paragraph (1) shall apply to tax credit only where both—

(a)

the overpayment of benefit referred to in that paragraph, and

(b)

the amount referred to in sub-paragraph (a) of that paragraph,

are tax credit, and with the modification that sub-paragraph (b) of that paragraph is omitted.”

12Amendments to the principal Regulations

In regulation 14f1 for the words “family credit or disability working allowance” wherever they occur there shall be substituted the words “working families' tax credit or disabled person’s tax credit”.

13Amendments to the principal Regulations

In regulation 15(2)f1 sub-paragraphs (c) and (e) shall be omitted.

14Amendments to the principal Regulations

In regulation 17f1 the words “family credit or disability working allowance” wherever they occur shall be omitted.

Signature

G H Bush

Tim Flesher

Two of the Commissioners of Inland Revenue

14th September 1999

Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Social Security (Payments on account, Overpayments and Recovery) Regulations 1988 (S.I. 1988/664) (“the principal Regulations”) in consequence of the transfer under the Tax Credits Act 1999 of functions relating to family credit and disability working allowance from the Department of Social Security to the Treasury and the Inland Revenue on 5th October 1999. Family credit and disability working allowance are to become known as working families' tax credit and disabled person’s tax credit respectively (collectively “tax credit”) as from 5th October 1999. The Regulations also amend the principal Regulations to take account of the provisions for decisions and appeals relating to social security benefits contained in the Social Security Act 1998 (c. 14), so far as concerns tax credit.

Regulation 1 provides for citation, commencement and effect, and regulation 2 for interpretation.

Regulations 3 to 14 contain amendments to the principal Regulations. The principal effects of the amendments are to treat social security benefits and tax credit separately, as regards the offsetting of a prior payment against a subsequent award, or as regards the recovery of overpayments by deductions from other benefits.