Recovery of top-up payments
I1I235Recovery of top-up payments where tax credits award made on a review
1
This section applies where—
a
a person (“P”), or (in the case of a joint claim) P or P's partner at the time of the claim, applies for a review under section 21A of the Tax Credits Act 2002 of a decision not to make an award of a tax credit or to terminate such an award, and
b
the conclusion on the review is that the decision is varied or cancelled.
2
P is liable to pay HMRC an amount equal to the sum of—
a
any top-up payments made to P for an entitlement period falling wholly within the relevant period, and
b
the relevant proportion of the sum of any top-up payments made to P for an entitlement period falling partly within the relevant period.
3
The “relevant period” means the period in relation to which the following conditions are met—
a
it falls within the review period (see subsection (4)),
b
it is a period for which an award of a tax credit is made, or continues, as a result of the variation or cancellation of the decision, and
c
where the award has been made to P and P's partner on a joint claim, the person who was P's partner at the time of the claim has been P's partner throughout the period.
4
The “review period” means the period which—
a
begins with the day on which the decision was made, and
b
ends with—
i
the day on which the person who applied for the review is notified of its conclusions, or
ii
if that day falls within an entitlement period for which P has made a valid declaration of eligibility, the last day of the entitlement period.
5
In subsection (2)(b) the “relevant proportion”, in relation to top-up payments made for an entitlement period, means a proportion equal to the proportion of the entitlement period which falls within the relevant period.
6
In this section “joint claim” has the same meaning as in the Tax Credits Act 2002.
7
For provision about terminating an award of a tax credit when a declaration of eligibility is made for a subsequent entitlement period, see section 30.