2012 No. 848
The Tax Credits (Miscellaneous Amendments) Regulations 2012
Made
Laid before Parliament
Coming into force
for the purpose of regulations 1(1) to 1(3), 2(1), 2(2)(b), 2(3) to 2(10), 2(11)(c), 2(12), 2(13)(c), 2(14) to 2(16), 2(17)(c)(iii), 2(18) to 2(20), and 3 to 9
for the purposes of regulations 1(4), 2(2)(a),2(11)(a) to 2(11)(b), 2(13)(a) to 2(13)(b), and 2(17)(a) to 2(17)(c)(ii)
The Treasury make regulations 1(1), 1(2), 1(4), 2, 3, 4, 7, 8 and 9 of these Regulations exercising their powers in sections 3(7), 7(8), 8(2), 8(3), 9, 10, 11(7), 12(1), 42(1), 65(1), 65(7), 65(9) and 67 of the Tax Credits Act 20021.
The Commissioners for Her Majesty’s Revenue and Customs make regulations 1(1), 1(3), 5 and 6 of these Regulations exercising their powers in sections 4(1)(b), 6, 24(7), 65(2), 65(7), 65(9) and 67 of that Act2.
Citation and commencement1
1
These Regulations may be cited as the Tax Credits (Miscellaneous Amendments) Regulations 2012.
This paragraph comes into force on 6 April 2012.
2
Regulations 2(1), 2(2)(b), 2(3) to 2(10), 2(11)(c), 2(12), 2(13)(c), 2(14) to 2(16), 2(17)(c)(iii), 2(18) to 2(20), 3, 4, and 7 to 9 – and this paragraph – come into force on 6 April 2012.
3
Regulations 5 and 6 – and this paragraph – come into force on 6 April 2012.
4
Regulations 2(2)(a), 2(11)(a) to 2(11)(b), 2(13)(a) to 2(13)(b), and 2(17)(a) to 2(17)(c)(ii) –and this paragraph – come into force on 1 May 2012.
Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002: elements of the credit; time off; illness, etc; not working; changed circumstances; rates2
1
This regulation amends the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20023 as follows.
2
In regulation 2(1)—
a
after the entry for “initial claim”, it inserts:
“limited capability for work credit” refers to a credit under regulation 8B(1) of the Social Security (Credits) Regulations 19754 where paragraph (2)(a)(iv) or (2)(a)(v) of that regulation applies, and which follows the cessation of the entitlement period of contributory employment and support allowance;
b
in the entry for “patient”, for “1975” it substitutes: “20055”.
3
In regulation 3—
a
in paragraph (1)—
i
after sub-paragraph (d), it inserts: “and”;
ii
it omits sub-paragraph (f) and the “and” before it;
b
in paragraph (3)—
i
after sub-paragraph (a), it inserts: “or”;
ii
it omits sub-paragraph (c) and the “or” before it.
4
In regulation 4(1)—
a
after “conditions”, it inserts: “(and in the case of the Second condition, one of the variations in that condition)”;
b
in the Second condition—
i
for “The person”, it substitutes: “First variation: In the case of a single claim, the person—”;
ii
in paragraph (a)(ii), it omits: “either he or his partner”;
iii
it omits paragraph (b);
iv
after paragraph (d), it inserts—
Second variation: In the case of a joint claim where neither person is responsible for a child or qualifying young person, the person—
a
is aged at least 16 and undertakes work for not less than 16 hours per week and has a physical or mental disability which puts that person at a disadvantage in getting a job and satisfies regulation 9(1)(c);
b
is aged at least 25 and undertakes work for not less than 30 hours per week; or
c
is aged at least 60 and undertakes work for not less than 16 hours per week.
Third variation: In the case of a joint claim where a person or that person’s partner is responsible for a child or qualifying young person, the person—
a
is aged at least 16 and is a member of a couple where at least one partner undertakes work for not less than 16 hours per week and the aggregate number of hours for which the couple undertake work is not less than 24 hours per week;
b
is aged at least 16 and undertakes work for not less than 16 hours per week and has a physical or mental disability which puts that person at a disadvantage in getting a job and satisfies regulation 9(1)(c);
c
is aged at least 16 and undertakes work for not less than 16 hours per week and that person’s partner is—
i
incapacitated and satisfies any of the circumstances in regulation 13(4) to (8); or
ii
an in-patient in hospital; or
iii
in prison (whether serving a custodial sentence or remanded in custody awaiting trial or sentence); or
iv
entitled to carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 19926;
d
is aged at least 60 and undertakes work for not less than 16 hours per week.
c
it omits from “Paragraphs (3) and (4)” to “getting a job.”.
5
After regulation 4(1) it inserts—
1A
For the purposes of interpretation of paragraph (1)—
a
paragraphs (3) and (4) provide the method of determining the number of hours of qualifying remunerative work that a person undertakes;
b
regulations 5, 5A, 6 and 7A and 7B apply in relation to periods of absence from work connected with childbirth or adoption, sickness, strike periods or suspension from work;
c
regulations 7 and 7C apply to term time and seasonal workers and where pay is received in lieu of notice;
d
regulation 7D applies where a person or, in the case of a joint claim, one or both persons cease to work or reduce their hours to the extent that they no longer satisfy the Second condition in paragraph (1);
e
regulation 8 applies where there is a gap between jobs;
f
regulation 9 prescribes the conditions which must be satisfied by, or exist in relation to, a person so that he is to be treated as having a physical or mental disability which puts him at a disadvantage in getting a job.
6
In regulation 5(2), for “paragraphs (3) and (3A)”, it substitutes: “paragraphs (3), (3A) and regulation 7D”.
7
In regulation 5A—
a
in paragraph (2), for “A person who was undertaking qualifying remunerative work for at least 16 hours per week”, it substitutes: “A person who would have been treated as being engaged in qualifying remunerative work if they or, in the case of a joint claim, they or their partner had been responsible for a child or qualifying young person”;
b
after paragraph (3), it inserts—
4
This regulation is subject to regulation 7D.
8
In regulation 6(2), for “paragraphs (3) and (4)”, it substitutes: “paragraphs (3), (4) and regulation 7D”.
9
In regulations 7A(2) and 7B(2), for “paragraph (3)”, it substitutes: “paragraph (3) and regulation 7D”.
10
In regulation 7D—
a
in the heading after “16”, it inserts: “, 24”;
b
in paragraph (1)(e), after (c), it inserts: “of the first variation or paragraph (b) of the second variation”;
c
after paragraph (1)(e), it inserts—
f
one or both members of a couple who satisfy paragraph (a) of the third variation of the Second condition in regulation 4(1) and are engaged in qualifying remunerative work cease to work or reduce their hours to the extent that they cease to meet the condition that one member of the couple works not less than 16 hours per week and the aggregate number of hours for which the couple are engaged in qualifying remunerative work is not less than 24 hours per week.
11
In regulation 9(2)(d)—
a
after the first use of “employment and support allowance”, it inserts: “or a limited capability for work credit,”;
b
after the second use of “employment and support allowance”, it inserts: “or that credit”;
c
after “sick pay”, it inserts: “or a benefit or allowance mentioned in sub–paragraphs (a) to (c) or the income support payable under paragraph (3)(a),”.
12
In regulation 9(6)(a)(ii)—
a
after “on account of his”, it inserts: “incapacity for work or”;
b
after “an employment and support allowance”, it inserts: “, or the pay or benefit mentioned in paragraph (i),”;
c
after the second use of “on account of”, it inserts: “incapacity for work or”.
13
In regulation 9(7)(b)(iv)—
a
after “employment and support allowance”, it inserts: “or a limited capability for work credit,”;
b
after “that allowance”, it inserts: “or credit”;
c
after the first use of “sick pay”, it inserts: “or a benefit or allowance mentioned in paragraphs (i) to (iii),”.
14
In regulation 10, it omits paragraph (3).
15
In regulation 11—
a
it omits paragraphs (2) and (3);
b
in paragraph (4), it omits: “also”.
16
In regulation 13(1)—
a
in sub-paragraphs (b) and (c), after “work”, it inserts: “for not less than 16 hours per week”;
b
in sub-paragraph (c)(iii) it omits the full stop and inserts “; or” and after sub-paragraph (c)(iii) it inserts—
iv
is entitled to carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 19927.
17
In regulation 13(6)—
a
after “payable” in the introductory words, it inserts: “or – in the case of a credit – an entitlement”;
b
it omits in the introductory words: “pensions or allowances”;
c
in sub-paragraph (h)—
i
after “support allowance”, it inserts: “or a limited capability for work credit,”;
ii
after “that allowance”, it inserts: “or credit”;
iii
after the first use of “sick pay”, it inserts: “or a benefit or allowance mentioned in sub-paragraph (a) or (b) or (d),”.
18
In regulation 16(5)(a)(ii), for “three months” it substitutes: “one month”.
19
It omits regulation 18.
20
In regulation 20(1)—
a
after sub-paragraph (e), it inserts: “and”;
b
it omits: sub-paragraph (g) and the “and” before it.
Amendment of the Tax Credits (Definition and Calculation of Income) Regulations 2002: income disregards, etc3
1
This paragraph amends Table 1 in regulation 4(4) of the Tax Credits (Definition and Calculation of Income) Regulations 20028 by inserting as item 3C—
3C The payment under a Royal Warrant made under section 333 of the Armed Forces Act 20069, of the Continuity of Education Allowance to or in respect of members of the armed forces of the Crown during their employment under the Crown or after their deaths.
2
This paragraph amends that table by inserting as item 21—
21 The payment or reimbursement of a fee within section 326A(1) of ITEPA10 (fees relating to vulnerable persons’ monitoring schemes).
3
This paragraph amends regulation 8 of those Regulations as follows—
a
in paragraph (a), for everything after “payable”, it substitutes: “pursuant to regulations under section 22 of the Teaching and Higher Education Act 199811;”;
b
in paragraph (b), for “1999”, it substitutes: “200712”;
c
in paragraph (c), it omits: “and Wales”;
d
in paragraph (d), for everything after “payable”, it substitutes: “pursuant to regulations under section 22 of the Teaching and Higher Education Act 199813.”.
Amendment of the Child Tax Credit Regulations 2002: 16-year olds, etc4
1
This regulation amends the Child Tax Credit Regulations 200214 as follows.
2
In regulation 2(1), for the definition of “placing for adoption”, it substitutes—
3
In the following places in Rule 4.1 of regulation 3, after “under”, it inserts: “section 22C(10)19 or”—
a
in sub-paragraph (i) in Case A;
b
in Case B.
4
In regulation 4—
a
for “A” at the beginning of paragraph (1), it substitutes: “Subject to paragraph (1A), a”;
b
after paragraph (1), it inserts—
1A
A person who attains the age of sixteen on 31st August is a qualifying young person from the date on which that person attained that age.
c
after paragraph (2), it inserts—
2A
Paragraph (1A) is subject to regulation 5.
Amendment of the Tax Credits (Claims and Notifications) Regulations 2002: changed circumstances, etc5
1
This regulation amends the Tax Credits (Claims and Notifications) Regulations 200220 as follows.
2
In the following places, for “93”, it substitutes: “31”—
a
in the heading to regulation 7,
b
in regulation 7(2)(a),
c
in regulation 8(2)(b),
d
in regulation 8(3)(b).
3
In regulation 21(2)—
a
in sub-paragraph (c)(i), after “5 to 8)”, it inserts: “except where that person falls within paragraph (a) of the third variation of the Second Condition”;
b
for sub-paragraph (d), it substitutes—
d
a person ceases to undertake work for at least 30 hours per week for the purposes of the first or second variation of the Second Condition in regulation 4(1) of the Working Tax Credit Regulations (read with regulations 4(3) to (5) and 5 to 8), except in a case where that person still falls within the terms of paragraph (a) or (d) of the first variation or paragraph (a) or (c) of the second variation of that Condition;
c
at the end of sub-paragraph (e)(i), it inserts: “or”;
d
it omits sub-paragraph (e)(iii) and the “or” before it;
e
after sub-paragraph (k), it inserts—
l
one or both members of a couple who satisfy paragraph (a) of the third variation of the Second Condition in regulation 4(1) of the Working Tax Credit Regulations (read with regulations 4(3) to (5) and 5 to 8) and are engaged in qualifying remunerative work cease to meet the condition that one member of the couple works not less than 16 hours per week and the aggregate number of hours for which the couple are engaged in qualifying remunerative work is not less than 24 hours per week, except in a case where the person or their partner still falls within the terms of paragraph (b), (c) or (d) of the third variation of that Condition
4
In the following places, for “3 months”, it substitutes: “one month”—
a
in regulation 25(3)(a),
b
in regulation 26(2)(b),
c
in regulation 26(3)(b),
d
in regulation 26A(2)(b),
e
in regulation 26A(3)(b).
Amendment of the Tax Credits (Payments by the Commissioners) Regulations 2002: time limit6
1
This regulation amends the Tax Credits (Payments by the Commissioners) Regulations 200221 as follows.
2
In regulation 11(2A)(b), for “eight” it substitutes: “four”.
3
The amendment made by paragraph (2) only has effect in relation to a notice given on or after 6 April 2012 within regulation 11(2A)(a) of those Regulations.
Amendment of the Tax Credits (Immigration) Regulations 2003: time limit7
This regulation amends regulation 3(5)(b) of the Tax Credits (Immigration) Regulations 200322 by substituting for “3 months”: “one month”.
Amendment of the Tax Credits (Residence) Regulations 2003: legislative references8
This regulation amends regulation 3(4) of the Tax Credits (Residence) Regulations 200323 by substituting the following for “Council Regulation (EEC) No. 1612/6824 as amended by Council Directive No 2004/38/EC25, or Commission Regulation (EEC) No. 1251/7026”: “Parliament and Council Regulation (EU) No 492/201127”.
Amendment of the Tax Credits (Polygamous Marriages) Regulations 2003: basic element of Working Tax Credit9
For regulation 29 of the Tax Credits (Polygamous Marriages) Regulations 200328, this regulation substitutes—
29
In regulation 4(1) in the third variation of the Second Condition—
a
in the introduction, for “that person’s partner” substitute: “any other member of the polygamous unit”; and
b
in paragraph (a)—
i
for “couple” (in both places) substitute: “polygamous unit”; and
ii
for “partner” substitute: “member of the unit”.
(This note is not part of the Regulations)