TFC40100 - Termination of a tax credit claim

Childcare Payments Act 2014, section 30(1)

Where a person makes a declaration of eligibility for an entitlement period, the first day of the entitlement period, or if later, the day on which the declaration of eligibility for the entitlement period was made is referred to as ‘the relevant day’.

Childcare Payments Act 2014, section 30(2) and (3)

If a person has made a valid declaration of eligibility for an entitlement period and an award of a tax credit has been made to that person, or a person who is their partner on the relevant day (whether on a single claim or joint claim), or to both of them on a joint claim, and the award is for a period that includes the relevant day, then the tax credit award is terminated immediately before the relevant day, regardless of whether the decision on the claim was made before or after the relevant day.

Childcare Payments Act 2014, section 30(4)

Where a person has made a valid declaration of eligibility for more than one entitlement period beginning during the determination period, the award of the tax credit is terminated immediately before the day which is the relevant day in relation to the first of those entitlement periods.

Childcare Payments Act 2014, section 30(5)

The determination period in relation to an award of a tax credit is the period beginning with the day on which the claim for the tax credit was made and the ending with the day on which the decision on the claim was made.

The above will not apply in the following circumstances:

Childcare Payments Act 2014, section 30(6)

Where a person has applied, under section 21A of the Tax Credits Act 2002, for a review of a decision not to make an award of a tax credit or to terminate an award and the conclusion on the review is that the decision is varied or cancelled, in respect of the award in relation to any entitlement period beginning before the day on which the person is notified of the conclusion of the review, or;

Childcare Payments Act 2014, section 30(7)

Where a person has brought an appeal, under section 38 of the Tax Credits Act 2002, against a decision not to make an award of a tax credit or to terminate such an award and the appeal is upheld, in respect of the award in relation to any entitlement period beginning before the day on which the person is notified of the decision on the appeal.

Childcare Payments Act 2014, section 30(8)

Where an award of a tax credit is terminated by virtue of this section:

Childcare Payments Act 2014, section 30(8)(a)

HMRC must notify the person of that fact, and;

Childcare Payments Act 2014, section 30(8)(b)

The tax credit legislation applies in relation to the person with such modifications as may be made in regulations, and;

Childcare Payments Act 2014, section 30(8)(c)

The amount of any tax credit to which the person is entitled is to be calculated in accordance with the tax credit legislation, subject to any such modifications of that legislation.

Childcare Payments Act 2014, section 30(11)

If a person makes a declaration of eligibility for an entitlement period and at any time after the relevant day HMRC determine that the declaration was not valid, that does not affect anything done by virtue of this section as a result of the making of the declaration.

Childcare Payments Act 2014, section 30(12)

Joint claim and single claim have the same meaning as in the Tax Credits Act 2002 and the tax credit legislation means the Tax Credits Act 2002 and any provision made under that Act.