Other enforcement powers
52Deduction of recoverable amounts from tax credit awards
(1)
This section applies where, as a result of a review of, or an appeal against, a tax credits decision—
(a)
a person is required to pay an amount (“the relevant debt”) to HMRC under section 35 or 36, and
(b)
an amount of tax credit (“the award”) is payable to the person or to the person and the person's partner jointly.
(2)
The relevant debt may be deducted from the award before it is paid.
(3)
The requirement to pay the relevant debt is discharged to the extent that it is deducted from the award under this section.
(4)
In this section “tax credits decision” means a decision not to make an award of a tax credit or to terminate such an award.
(5)
This section ceases to have effect when the repeal of Part 1 of the Tax Credits Act 2002 made by Schedule 14 to the Welfare Reform Act 2012 has fully come into force.