TCTM11006 - Transition to Universal Credit: Termination of tax credits awards

The Universal Credit (Transitional Provisions) Regulations 2014, Regulation 8

This regulation provides for the termination of a tax credits award when a claimant makes a claim to universal credit. This type of termination of a tax credits award, is not a s16(1) of the Tax Credits Act 2002 termination and carries no right of appeal.

Where a claim for universal credit is made and the Secretary of State is satisfied that the claimant meets the basic conditions specified in section 4(1)(a) to (d) of the Welfare Reform Act 2012, all awards of a tax credit to which the claimant (or, in the case of joint claimants, either of them) is entitled on the date on which the claim is made are to terminate by virtue of this regulation

  • on the day before the first date on which the claimant is entitled to universal credit in connection with the claim; or
  • if the claimant is not entitled to universal credit, on the day before the first date on which he or she would have been so entitled, if all of the basic and financial conditions applicable to the claimant had been met.

Where this regulation applies and the claimant (or, in the case of joint claimants, either of them) is also treated or covered by regulation 11 (see TCTM11007) as being entitled to a tax credit, then;

  • the claimant is to be treated, for the purposes of the Tax Credits Act 2002 and this regulation, as having made a claim for the tax credit in question for the current tax year; and

  • if the claimant is entitled on the date on which the claim for universal credit was made to an award of a tax credit which is made in respect of a claim which is treated as having been made, that award is to terminate, by virtue of this regulation-

  • on the day before the first date on which the claimant is entitled to universal credit; or
  • if the claimant is not entitled to universal credit, on the day before the first date on which he or she would have been so entitled, if all of the basic and financial conditions applicable to the claimant had been met.
Section 4(1)(a) to (d) Welfare Reform Act 2012

Basic conditions

A person meets the basic conditions of entitlement to universal credit who

  1. is at least 18 years old

  2. has not reached the qualifying age for state pension credit;

  3. is in Great Britain;

  4. is not receiving education

Regulations may provide for exceptions to the requirement to meet any of the basic conditions.