Tax Credits Act 1999

14 Persons qualifying for disabled person’s tax credit

(1) Subject to subsection (6) below, section 129 of the [1992 c. 4.] Social Security Contributions and Benefits Act 1992 (disabled person’s tax credit) and section 128 of the [1992 c. 7.] Social Security Contributions and Benefits (Northern Ireland) Act 1992 (equivalent provision for Northern Ireland) shall be amended in accordance with subsections (2) to (5) below.

(2) In subsection (1), for “or (2A)” there shall be substituted “, (2A) or (2C)”.

(3) In subsection (2)(a), for “56 days” there shall be substituted “182 days”.

(4) After subsection (2B) there shall be inserted the following subsections—

“(2C) A person qualifies under this subsection if—

(a) the condition mentioned in subsection (2D) below is satisfied;

(b) a medical practitioner (within the meaning of the Administration Act) certifies, not more than 14 days before the date when the claim for disabled person’s tax credit is made—

(i) that in his opinion the person will continue to have the disability in question for a period of at least six months; or

(ii) that in his opinion the person will continue to have that disability for the remainder of his life; and

(c) the level of the person’s expected earnings is lower, by at least the required amount, than it would have been if he had not had the disability.

(2D) The condition is that there are 140 qualifying days, the last falling within the period of 56 days immediately preceding the date when the claim for disabled person’s tax credit is made, which are days in respect of which—

(a) statutory sick pay has been payable to the person;

(b) the lower rate of short-term incapacity benefit has been payable to him;

(c) income support has been payable to him on grounds of incapacity; or

(d) earnings have been credited to him under regulations made under section 22(5) above.

(2E) For the purposes of subsections (2C) and (2D) above—

(a) the required amount, in relation to a person’s expected earnings, is—

(i) 20 per cent of what those earnings would have been if he had not had the disability; or

(ii) if the amount given by sub-paragraph (i) above is less than the prescribed amount, the prescribed amount;

(b) qualifying days are days forming part of a single period of incapacity for work within the meaning of Part XI of this Act; and

(c) income support is payable to a person on grounds of incapacity if and only if he satisfies the condition in section 124(1)(e) above by virtue of being a person who—

(i) is, or is treated as, incapable of work for any purposes of this Act; or

(ii) is treated as capable of work by virtue of regulations under section 171E below.

(2F) Sections 3 and 112 above shall apply as if this section were included in Parts I to V of this Act.”

(5) In subsection (8), after “allowance” there shall be substituted “, or the level of a person’s expected earnings,”.

(6) In section 128(2E)(c) of the [1992 c. 7.] Social Security Contributions and Benefits (Northern Ireland) Act 1992, as inserted by subsection (4) above, for “124(1)(e)” there shall be substituted “123(1)(e)” and for “171E” there shall be substituted “167E”.

(7) In section 11(3)(b) of the [1992 c. 5.] Social Security Administration Act 1992 (repeat claims), for the words from “he” to “that paragraph” there shall be substituted—

“(i) he qualified under subsection (2) of section 129 of the Contributions and Benefits Act by virtue of paragraph (a) of that subsection, or of there being payable to him a benefit under an enactment having effect in Northern Ireland and corresponding to a benefit mentioned in that paragraph; or

(ii) he qualified under subsection (2C) of that section or of section 128 of the Northern Ireland Contributions and Benefits Act,”.

(8) In section 9(3)(b) of the [1992 c. 8.] Social Security Administration (Northern Ireland) Act 1992 (corresponding provision for Northern Ireland), for the words from “he” to “that paragraph” there shall be substituted—

“(i) he qualified under subsection (2) of section 128 of the Contributions and Benefits Act by virtue of paragraph (a) of that subsection, or of there being payable to him a benefit under an enactment having effect in Great Britain and corresponding to a benefit mentioned in that paragraph; or

(ii) he qualified under subsection (2C) of that section or of section 129 of the Great Britain Contributions and Benefits Act,”.

(9) This section, except subsection (3) above (and subsection (1) above so far as relating to that subsection), applies to claims made, or treated as made, on or after 1st October 2000.