Tax Credits Act 1999

10 (1) Section 71 of the Social Security Administration Act 1992 (overpayments: general), and section 69 of the Social Security Administration (Northern Ireland) Act 1992 (corresponding provision for Northern Ireland), shall have effect in any case where the overpayment was made in respect of tax credit as if for subsections (8) and (9) there were substituted— E+W+S+N.I.

“(8) An amount recoverable under subsection (1) above in any year of assessment—

(a) shall be treated for the purposes of Part VI of the M1 Taxes Management Act 1970 (collection and recovery) as if it were tax charged in an assessment and due and payable;

(b) shall be treated for the purposes of section 203(2)(a) of the M2 Income and Corporation Taxes Act 1988 (PAYE) as if it were an underpayment of tax for a previous year of assessment.

(8A) Where—

(a) an amount paid in respect of a claim is recoverable under subsection (1) above; and

(b) a penalty has been imposed under section 9(1) of the Tax Credits Act 1999 (penalties for fraud etc.) on the ground that a person fraudulently or negligently made an incorrect statement or declaration in connection with that claim,

the amount shall carry interest at the rate applicable from the date on which it becomes recoverable until payment.

(9) The rate applicable for the purposes of subsection (8A) above shall be the rate from time to time prescribed under section 178 of the M3 Finance Act 1989 for those purposes.”

(2) After paragraph (gg) of section 178(2) of the Finance Act 1989 (setting rates of interest) there shall be inserted—

“(gh) section 71(8A) of the M4 Social Security Administration Act 1992, and section 69(8A) of the M5 Social Security Administration (Northern Ireland) Act 1992, as they have effect in any case where the overpayment was made in respect of working families’ tax credit or disabled person’s tax credit;”.

Annotations:

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Marginal Citations

M1 1970 c.9.

M2 1988 c.1.

M3 1989 c.26.

M4 1992 c.5.

M5 1992 c.8.