TCTM02015 - Withdrawal Agreement – The Immigration and Social Security Co-ordination (EU Withdrawal Act) 2020
The Withdrawal Agreement
The Withdrawal Agreement (WA) – is the Agreement between the UK and the EU, which sets out the terms of the UK’s exit from the European Union
The European Union Withdrawal Agreement) Act 2020 implements the WA, the EEA-EFTA Separation Agreement, and the Swiss Citizens’ Rights Agreement
Council Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community (Regulation (EC) No 1408/71)
Regulation (EC) 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (Regulation (EC) No 883/2004)
Council Regulation (EC) No 859/2003 extending the provisions of Regulation (EEC) No 1408/71 and Regulation (EEC) No 574/72 to nationals of third countries who are not already covered by those provisions solely on the ground of their nationality (Regulation (EC) No 859/2003)
The UK left the European Union on 31 January 2020 and entered into an implementation period which ended on 31 December 2020. The new rules governing the new relationship between the European Union (EU) and the United Kingdom (UK) took effect from 1 January 2021.
Part two of the WA
Provides for the rights of EU citizens in the UK and UK nationals in the EU at the end of the implementation period (IP), including:
- Protection of residence rights
- Protection of rights relating to social security co-ordination (SSC)
Article 10 covers:
- EU citizens in the UK exercising their right to reside under EU law and resident at the end of the IP
- Frontier workers at the end of the IP
- Family members of the above (including unborn children)
Article 10
1. Without prejudice to Title III, this Part shall apply to the following persons:
(a) EU citizens who exercised their right to reside in the UK in accordance with EU law before the end of the transition period and continue to reside there thereafter;
(b) UK nationals who exercised their right to reside in a EU Member State in accordance with EU law before the end of the transition period and continue to reside there thereafter;
(c) EU citizens who exercised their right as frontier workers in the UK in accordance with EU law before the end of the transition period and continue to do so thereafter;
(d) UK nationals who exercised their right as frontier workers in one or more EU Member States in accordance with EU law before the end of the transition period and continue to do so thereafter;
Article 30 covers:
- EU citizens subject to the UK legislation at the end of the IP and UK citizens subject to EU legislation at the end of the IP
Article 30
1. This Title shall apply to the following persons:
(a) EU citizens who are subject to the legislation of the UK at the end of the transition period, as well as their family members and survivors;
(b) UK nationals who are subject to the legislation of an EU Member State at the end of the transition period, as well as their family members and survivors;
(c) EU citizens who reside in the United Kingdom and are subject to the legislation of an EU Member State at the end of the transition period, as well as their family members and survivors;
(d) UK nationals who reside in an EU Member State, and are subject to the legislation of the UK at the end of the transition period, as well as their family members and survivors
(e) persons who do not fall within points (a) to (d) but are:
(i) EU citizens who pursue an activity as an employed or self-employed person in the UK at the end of the transition period, and who, based on Title II of Regulation (EC) No 883/2004, are subject to the legislation of an EU Member State, as well as their family members and survivors; or
(ii) UK nationals who pursue an activity as an employed or self-employed person in one or more EU Member States at the end of the transition period, and who, based on Title II of Regulation (EC) No 883/2004, are subject to the legislation of the UK, as well as their family members and survivors;
(f) stateless persons and refugees, residing in an EU Member State or in the UK, who are in one of the situations described in points (a) to (e), as well as their family members and survivors;
(g) nationals of third countries, as well as members of their families and survivors, who are in one of the situations described in points (a) to (e), provided that they fulfil the conditions of Regulation (EC) No 859/2003.
2. The persons referred to in paragraph 1 shall be covered for as long as they continue without interruption to be in one of the situations set out in that paragraph involving both an EU Member State and the UK at the same time.
3. This Title shall also apply to persons who do not, or who no longer, fall within points (a) to (e) of paragraph 1 of this Article but who fall within Article 10 of this Agreement, as well as their family members and survivors.
4. The persons referred to in paragraph 3 shall be covered for as long as they continue to have a right to reside in the host State under Article 13 of this Agreement, or a right to work in their State of work under Article 24 or 25 of this Agreement.
5. Where this Article refers to family members and survivors, those persons shall be covered by this Title only to the extent that they derive rights and obligations in that capacity under Regulation (EC) No 883/2004.
- The following rules shall apply in the following situations to the extent set out in this Article, insofar as they relate to persons not or no longer covered by Article 30:
(a) the following persons shall be covered by this Title for the purposes of reliance on and aggregation of periods of insurance, employment, self-employment or residence, including rights and obligations deriving from such periods in accordance with Regulation (EC) No 883/2004:
(i) EU citizens, as well as stateless persons and refugees residing in an EU Member State and nationals of third countries who fulfil the conditions of Regulation (EC) No 859/2003, who have been subject to the legislation of the UK before the end of the transition period, as well as their family members and survivors;
(ii) UK nationals, as well as stateless persons and refugees residing in the UK and nationals of third countries who fulfil the conditions of Regulation (EC) No 859/2003, who have been subject to the legislation of an EU Member State before the end of the transition period, as well as their family members and survivors;
for the purposes of the aggregation of periods, periods completed both before and after the end of the transition period shall be taken into account in accordance with Regulation (EC) No 883/2004;
(b) the rules set out in Articles 20 and 27 of Regulation (EC) No 883/2004 shall continue to apply to persons who, before the end of the transition period, had requested authorisation to receive a course of planned health care treatment pursuant to Regulation (EC) No 883/2004, until the end of the treatment. The corresponding reimbursement procedures shall also apply even after the treatment ends. Such persons and the accompanying persons shall enjoy the right to enter and exit the State of treatment in accordance with Article 14, mutatis mutandis;
(c) the rules set out in Articles 19 and 27 of Regulation (EC) No 883/2004 shall continue to apply to persons who are covered by Regulation (EC) No 883/2004 and who are on a stay at the end of the transition period in an EU Member State or the UK, until the end of their stay. The corresponding reimbursement procedures shall also apply even after the stay or treatment ends.
Article 32 provides a more limited set of SSC rights. For tax credits purposes, it maintains awards for which there was entitlement at the end of the Transition Period, where the customer:
- is a UK national, a stateless person or a refugee or a third country national meeting the conditions of Regulation (EC) 859/2003;
- is resident in the UK and subject to UK legislation; and
- their children reside in the EU.
It also maintains entitlement for EU citizens in same circumstances, i.e. resident in the EU, subject to the legislation of an EU MS with children residing in the UK.
The EEA-EFTA Separation Agreement and the Swiss Citizens’ Rights Agreement
The EEA-EFTA Separation Agreement is the Agreement between the UK and the EEA-EFTA States (Norway, Iceland, and Liechtenstein) on protecting citizens’ rights and resolving separation issues as the UK exits the EU; and
The Swiss Citizens’ Rights Agreement is the agreement reached with Switzerland on protecting citizens’ rights and resolving separation issues as the UK exits the EU.
These agreements provide the same protections of residence and SSC rights as Part 2 of the WA for nationals of Norway, Iceland, Liechtenstein and Switzerland. The WA and these agreements also extend to nationals of the EU, the EEA-EFTA States and Switzerland. Any reference to the WA in the following content should also be read as a reference to the EEA-EFTA Separation Agreement and the Swiss Citizens’ rights Agreement.
In scope of the WA
UK, EEA-EFTA and Swiss nationals currently in receipt of Child Tax Credit, in scope of the WA will continue to receive and export Child Tax Credit in respect of children living in EU Member States, the EEA-EFTA States or Switzerland.
UK, EEA-EFTA and Swiss nationals currently in receipt of Child Tax Credit who have a right to reside in the UK or are subject to UK legislation at the end of the IP, 31 December 2020 are in scope and can continue to receive Child Tax Credit and this can be exported for children residing in EU Member States, the EEA-EFTA States or Switzerland. Full rights under the WA and Regulation (EC) Nos 883/2004 and 987/2009 continue to apply.
Out of scope of the WA
UK, EEA-EFTA and Swiss nationals currently in receipt of Child Tax Credit who do not have a right to reside in the UK or are not subject to UK legislation at the end of the IP, at 31 December 2020 do not fall in scope of the WA and will not have access to benefit.
EU Settlement Scheme (EUSS)
EU, EEA-EFTA and Swiss nationals currently in receipt of Tax Credit are required to apply to the EUSS to be granted an immigration status:
- Settled Status for those who have been in the UK for five years or more
- Pre-Settled Status for those who have been in the UK for less than five years
Third country nationals who are currently in receipt of Tax Credit and are family members of EU, EEA-EFTA and Swiss nationals are also required to apply to the EUSS.
Home Office New Immigration System
The new Home Office Future Border Immigration System went live on 1 January 2021. All non-UK [or non-Irish] nationals are required to apply to either EUSS or FBIS for an immigration status.
Grace Period
EU, EEA-EFTA or Swiss nationals currently in receipt of Tax Credit, resident in the UK and in scope of the WA, must apply to the EUSS if they do not have an existing valid immigration status.
A “Grace Period” was introduced in line with the WA from the end of the IP (31 December) 2020 until 30 June 2021 to provide time for EEA-EFTA and Swiss nationals with time to apply for a domestic immigration status. EEA-EFTA and Swiss nationals resident in the UK before the end of the IP, and their family members, were not required to have an immigration status during this period. However, they are required to have applied for a status by the end of the Grace Period to legalise their stay in the UK.
The deadline for applying to the EUSS was 30 June 2021. However, you may still be able to make a late application.
To apply, go to
If you do not apply, you will be a person subject to immigration control in the UK and will no longer have access to Tax Credit. See TCTM02102