36A Loss of working tax credit in case of conviction etc for benefit offence
(1) Subsection (4) applies where a person (“the offender”)—
(a) is convicted of one or more benefit offences in any proceedings, or
(b) after being given a notice under subsection (2) of the appropriate penalty provision by an appropriate authority, agrees in the manner specified by the appropriate authority to pay a penalty under the appropriate penalty provision to the appropriate authority, in a case where the offence to which the notice relates is a benefit offence, or
(c) is cautioned in respect of one or more benefit offences.
(2) In subsection (1)(b)—
(a) “the appropriate penalty provision” means section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution) or section 109A of the Social Security Administration (Northern Ireland) Act 1992 (the corresponding provision for Northern Ireland);
(b) “appropriate authority” means—
(i) in relation to section 115A of the Social Security Administration Act 1992, the Secretary of State or an authority which administers housing benefit or council tax benefit, and
(ii) in relation to section 109A of the Social Security Administration (Northern Ireland) Act 1992, the Department (within the meaning of that Act) or the Northern Ireland Housing Executive.
(3) Subsection (4) does not apply by virtue of subsection (1)(a) if, because the proceedings in which the offender was convicted constitute the current set of proceedings for the purposes of section 36C, the restriction in subsection (3) of that section applies in the offender's case.
(4) If this subsection applies and the offender is a person who would, apart from this section, be entitled (whether pursuant to a single or joint claim) to working tax credit at any time within the disqualification period, then, despite that entitlement, working tax credit shall not be payable for any period comprised in the disqualification period—
(a) in the case of a single claim, to the offender, or
(b) in the case of a joint claim, to the offender or the other member of the couple.
(5) Regulations may provide in relation to cases to which subsection (4)(b) would otherwise apply that working tax credit shall be payable, for any period comprised in the disqualification period, as if the amount payable were reduced in such manner as may be prescribed.
(6) For the purposes of this section, the disqualification period, in relation to any disqualifying event, means the relevant period beginning with such date, falling after the date of the disqualifying event, as may be determined by or in accordance with regulations.
(7) For the purposes of subsection (6) the relevant period is—
(a) in a case falling within subsection (1)(a) where the benefit offence, or one of them, is a relevant offence, the period of three years,
(b) in a case falling within subsection (1)(a) (but not within paragraph (a) above)), the period of 13 weeks, or
(c) in a case falling within subsection (1)(b) or (c), the period of 4 weeks.
(8) The Treasury may by order amend subsection (7)(a), (b) or (c) to substitute a different period for that for the time being specified there.
(9) This section has effect subject to section 36B.
(10) In this section and section 36B—
“benefit offence“ means any of the following offences committed on or after the day specified by order made by the Treasury—
an offence in connection with a claim for a disqualifying benefit;
an offence in connection with the receipt or payment of any amount by way of such a benefit;
an offence committed for the purpose of facilitating the commission (whether or not by the same person) of a benefit offence;
an offence consisting in an attempt or conspiracy to commit a benefit offence;
“disqualifying benefit” has the meaning given in section 6A(1) of the Social Security Fraud Act 2001;
“disqualifying event“ means—
the conviction falling within subsection (1)(a);
the agreement falling within subsection (1)(b);
the caution falling within subsection (1)(c);
“relevant offence” has the meaning given in section 6B of the Social Security Fraud Act 2001.
(1) Where—
(a) the conviction of any person of any offence is taken in account for the purposes of the application of section 36A in relation to that person, and
(b) that conviction is subsequently quashed,
all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 36A that could not have been imposed if the conviction had not taken place.
(2) Where, after the agreement of any person (“P”) to pay a penalty under the appropriate penalty provision is taken into account for the purposes of the application of section 36A in relation to that person—
(a) P's agreement to pay the penalty is withdrawn under subsection (5) of the appropriate penalty provision, or
(b) it is decided on an appeal or in accordance with regulations under the Social Security Act 1992 or the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)) that the overpayment to which the agreement relates is not recoverable or due,
all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 36A that could not have been imposed if P had not agreed to pay the penalty.
(3) Where, after the agreement (“the old agreement”) of any person (“P”) to pay a penalty under the appropriate penalty provision is taken into account for the purposes of the application of section 36A in relation to P, the amount of any overpayment made to which the penalty relates is revised on an appeal or in accordance with regulations under the Social Security Act 1998 or the Social Security (Northern Ireland) Order 1998—
(a) section 36A shall cease to apply by virtue of the old agreement, and
(b) subsection (4) shall apply.
(4) Where this subsection applies—
(a) if there is a new disqualifying event consisting of—
(i) P's agreement to pay a penalty under the appropriate penalty regime in relation to the revised overpayment, or
(ii) P being cautioned in relation to the offence to which the old agreement relates,
the disqualification period relating to the new disqualifying event shall be reduced by the number of days in so much of the disqualification period relating to the old agreement as had expired when subsection 36A ceased to apply by virtue of the old agreement, and
(b) in any other case, all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 36A that could not have been imposed if P had not agreed to pay the penalty.
(5) For the purposes of section 36A—
(a) the date of a person's conviction in any proceedings of a benefit offence shall be taken to be the date on which the person was found guilty of that offence in those proceedings (whenever the person was sentenced) or in the case mentioned in paragraph (b)(ii) the date of the order for absolute discharge, and
(b) references to a conviction include references to—
(i) a conviction in relation to which the court makes an order for absolute or conditional discharge,
(ii) an order for absolute discharge made by a court of summary jurisdiction in Scotland under section 246(3) of the Criminal Procedure (Scotland) Act 1995 without proceeding to a conviction, and
(iii) a conviction in Northern Ireland.
(6) In this section “the appropriate penalty provision” has the meaning given by section 36A(2)(a).
36C Loss of working tax credit for repeated benefit fraud
(1) If—
(a) a person (“the offender”) is convicted of one or more benefit offences in a set of proceedings (“the current set of proceedings”),
(b) within the period of five years ending on the date on which the benefit offence was, or any of them were, committed, one or more disqualifying events occurred in relation to the offender (the event, or the most recent of them, being referred to in this section as “the earlier disqualifying event”),
(c) the current set of proceedings has not been taken into account for the purposes of any previous application of this section in relation to the offender,
(d) the earlier disqualifying event has not been taken into account as an earlier disqualifying event for the purposes of any previous application of this section in relation to the offender, and
(e) the offender is a person who would, apart from this section, be entitled (whether pursuant to a single or joint claim) to working tax credit at any time within the disqualification period,
then, despite that entitlement, the restriction in subsection (3) shall apply in relation to the payment of that benefit in the offender's case.
(2) The restriction in subsection (3) does not apply if the benefit offence referred to in subsection (1)(a), or any of them, is a relevant offence.
(3) Working tax credit shall not be payable for any period comprised in the disqualification period—
(a) in the case of a single claim, to the offender, or
(b) in the case of a joint claim, to the offender or the other member of the couple.
(4) Regulations may provide in relation to cases to which subsection (3)(b) would otherwise apply that working tax credit shall be payable, for any period comprised in the disqualification period, as if the amount payable were reduced in such manner as may be prescribed.
(5) For the purposes of this section the disqualification period, in an offender's case, means the relevant period beginning with a prescribed date falling after the date of the conviction in the current set of proceedings.
(6) For the purposes of subsection (5) the relevant period is—
(a) in a case where, within the period of five years ending on the date on which the earlier disqualifying event occurred, a previous disqualifying event occurred in relation to the offender, the period of three years;
(b) in any other case, 26 weeks.
(7) In this section and section 36D—
“appropriate penalty provision” has the meaning given in section 36A(2)(a);
“benefit offence“ means any of the following offences committed on or after the day specified by order made by the Treasury—
an offence in connection with a claim for a disqualifying benefit;
an offence in connection with the receipt or payment of any amount by way of such a benefit;
an offence committed for the purpose of facilitating the commission (whether or not by the same person) of a benefit offence;
an offence consisting in an attempt or conspiracy to commit a benefit offence;
“disqualifying benefit” has the meaning given in section 6A(1) of the Social Security Fraud Act 2001;
“disqualifying event“ has the meaning given in section 36A(10);
“relevant offence” has the meaning given in section 6B of the Social Security Fraud Act 2001.
(8) Where a person is convicted of more than one benefit offence in the same set of proceedings, there is to be only one disqualifying event in respect of that set of proceedings for the purposes of this section and—
(a) subsection (1)(b) is satisfied if any of the convictions take place in the five year period there;
(b) the event is taken into account for the purposes of subsection (1)(d) if any of the convictions have been taken into account as mentioned there;
(c) in the case of the earlier disqualifying event mentioned in subsection (6)(a), the reference there to the date on which the earlier disqualifying event occurred is a reference to the date on which any of the convictions take place;
(d) in the case of the previous disqualifying event mentioned in subsection (6)(a), that provision is satisfied if any of the convictions take place in the five year period mentioned there.
(9) The Treasury may by order amend subsection (6) to substitute different periods for those for the time being specified there.
(10) An order under subsection (9) may provide for different periods to apply according to the type of earlier disqualifying event or events occurring in any case.
(11) This section has effect subject to section 36D.
(1) Where—
(a) the conviction of any person of any offence is taken into account for the purposes of the application of section 36C in relation to that person, and
(b) that conviction is subsequently quashed,
all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 36C that could not have been imposed if the conviction had not taken place.
(2) Subsection (3) applies where, after the agreement of any person (“P”) to pay a penalty under the appropriate penalty provision is taken into account for the purposes of the application of section 36C in relation to that person—
(a) P's agreement to pay the penalty is withdrawn under subsection (5) of the appropriate penalty provision,
(b) it is decided on an appeal or in accordance with regulations under the Social Security Act 1998 or the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)) that any overpayment made to which the agreement relates is not recoverable or due, or
(c) the amount of any over payment to which the penalty relates is revised on an appeal or in accordance with regulations under the Social Security Act 1998 or the Social Security (Northern Ireland) Order 1998 and there is no new agreement by P to pay a penalty under the appropriate penalty provision in relation to the revised overpayment.
(3) In those circumstances, all such payments and other adjustments shall be made as would be necessary if no restriction had been imposed by or under section 36C that could not have been imposed if P had not agreed to pay the penalty.
(4) For the purposes of section 36C—
(a) the date of a person's conviction in any proceedings of a benefit offence shall be taken to be the date on which the person was found guilty of that offence in those proceedings (whenever the person was sentenced) or in the case mentioned in paragraph (b)(ii) the date of the order for absolute discharge, and
(b) references to a conviction include references to—
(i) a conviction in relation to which the court makes an order for absolute or conditional discharge,
(ii) an order for absolute discharge made by a court of summary jurisdiction in Scotland under section 246(3) of the Criminal Procedure (Scotland) Act 1995 without proceeding to a conviction, and
(iii) a conviction in Northern Ireland.
(5) In section 36C references to any previous application of that section—
(a) include references to any previous application of a provision having an effect in Northern Ireland corresponding to provision made by that section, but
(b) do not include references to any previous application of that section the effect of which was to impose a restriction for a period comprised in the same disqualification period.
(1) If an overpayment of a tax credit for a period is attributable to fraud or neglect on the part of the person, or either or both of the persons, to whom the award of the tax credit was made (or a person acting for him, or for either or both of them, in making the claim for the tax credit), the Board may decide that the whole or any part of the overpayment is to carry interest.
(2) Where the Board so decide the overpayment (or part of the overpayment) carries interest at a prescribed rate from the date thirty days after the appropriate date.
(3) “The appropriate date” is—
(a) in the case of an amount treated as an overpayment by virtue of section 28(6), the date of the decision under section 16 to terminate the award, and
(b) in any other case, the date specified for the purposes of subsection (4) of section 17 in the notice given to the person or persons under that section in relation to the tax credit.
(4) The Board must give notice of a decision under subsection (1) to the person, or each of the persons, to whom it relates; and the notice must state the date on which it is given and include details of the right to appeal against the decision under section 38.
(5) A penalty under any of sections 31 to 33 carries interest at the prescribed rate from the date on which it becomes due and payable; but the Board may in their discretion mitigate any interest or entirely remit any interest which would otherwise be carried by a penalty.
(6) Any interest carried under this section by an overpayment or penalty is to be regarded for the purposes of section 29(3) to (5) or paragraph 7 of Schedule 2 as if it were part of the overpayment or penalty.
(1) An appeal may be brought against—
(a) a decision under section 14(1), 15(1), 16(1), 19(3) or 20(1) or (4) or regulations under section 21,
(b) the relevant section 18 decision in relation to a person or persons and a tax credit for a tax year and any revision of that decision under that section,
(c) a determination of a penalty under paragraph 1 of Schedule 2, ...
(ca) a decision under section 36A or 36C that working tax credit is not payable (or is not payable for a particular period), and
(d) a decision under section 37(1).
(1B) If in any case the conclusion of a review under section 21A or 21C is to uphold the decision reviewed, an appeal by virtue of subsection (1) in that case may be brought only against the original decision.
(1C) If in any case the conclusion of a review under section 21A or 21C is to vary the decision reviewed, an appeal by virtue of subsection (1) in that case may be brought only against the decision as varied.
(2) “ The relevant section 18 decision ” means—
(a) in a case in which a decision must be made under subsection (6) of section 18 in relation to the person or persons and the tax credit for the tax year, that decision, and
(b) in any other case, the decision under subsection (1) of that section in relation to the person or persons and the tax credit for the tax year.
(1) Notice of an appeal under section 38 against a decision must be given ... in the prescribed manner within the period of thirty days after the date on which notice under section 21A(3) or 21C(6) was given of the conclusion on the review of the decision.
(2) Notice of such an appeal must specify the grounds of appeal.
(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) Part 5 of the Taxes Management Act 1970 (appeals and other proceedings) applies in relation to appeals under section 38 (as in relation to appeals under the Taxes Acts, within the meaning of that Act), but subject to such modifications as are prescribed.
(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The Commissioners for Her Majesty’s Revenue and Customs may treat a late appeal under section 38 as made in time where the conditions specified in subsections (2) to (6) are satisfied, except that the Commissioners may not do so in the case of an appeal made more than one year after the expiration of the time (original or extended) for appealing.
(2) An appeal may be treated as made in time if the Commissioners are satisfied that it is in the interests of justice to do so.
(3) For the purposes of subsection (2) it is not in the interests of justice to treat an appeal as made in time unless—
(a) the special circumstances specified in subsection (4) are relevant; or
(b) some other special circumstances exist which are wholly exceptional and relevant,
and as a result of those special circumstances it was not practicable for the appeal to be made in time.
(4) The special circumstances mentioned in subsection (3)(a) are—
(a) the appellant or a partner or dependant of the appellant has died or suffered serious illness;
(b) the appellant is not resident in the United Kingdom; or
(c) normal postal services were disrupted.
(5) In determining whether it is in the interests of justice to treat an appeal as made in time, regard shall be had to the principle that the greater the amount of time that has elapsed between the expiration of the time for appealing and the submission of the notice of appeal, the more compelling should be the special circumstances.
(6) In determining whether it is in the interests of justice to treat an appeal as made in time, no account shall be taken of the following—
(a) that the appellant or any other person acting for the appellant was unaware of or misunderstood the law applicable to the appellant’s case (including ignorance or misunderstanding of any time limit); or
(b) that the Upper Tribunal or a court has taken a different view of the law from that previously understood and applied.
(7) If in accordance with the preceding provisions of this section the Commissioners for Her Majesty’s Revenue and Customs treat a late appeal under section 38 as made in time, it is to be treated as having been brought within any applicable time limit.
(1) The Board must make to the Treasury an annual report about—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) the number of awards of child tax credit and of working tax credit,
(c) the number of enquiries conducted under section 19,
(d) the number of penalties imposed under this Part, and
(e) the number of prosecutions and convictions for offences connected with tax credits.
(2) The Treasury must publish each annual report made to it under subsection (1) and lay a copy before each House of Parliament.
(1) The Treasury must, in each tax year, review the amounts specified in subsection (2) in order to determine whether they have retained their value in relation to the general level of prices in the United Kingdom as estimated by the Treasury in such manner as it considers appropriate.
(2) The amounts are monetary amounts prescribed—
(a) under subsection (1)(a) of section 7,
(b) for the purposes of any of paragraphs (a) to (d) of subsection (3) of that section,
(c) under section 9,
(d) under section 11, otherwise than by virtue of section 12, or
(e) under subsection (2) of section 13, otherwise than by virtue of subsection (3) of that section.
(3) The Treasury must prepare a report of each review.
(4) The report must include a statement of what each amount would be if it had fully retained its value.
(5) The Treasury must publish the report and lay a copy of it before each House of Parliament.
(1) Regulations may make provision in relation to persons subject to immigration control or in relation to prescribed descriptions of such persons—
(a) for excluding entitlement to, or to a prescribed element of, child tax credit or working tax credit (or both), or
(b) for this Part to apply subject to other prescribed modifications.
(2) “Person subject to immigration control” has the same meaning as in section 115 of the Immigration and Asylum Act 1999 (c. 33).
(1) Regulations may make provision for this Part to apply in relation to persons who are parties to polygamous marriages subject to prescribed modifications.
(2) A person is a party to a polygamous marriage if—
(a) he is a party to a marriage entered into under a law which permits polygamy, and
(b) either party to the marriage has a spouse additional to the other party.
(1) Every assignment of or charge on a tax credit, and every agreement to assign or charge a tax credit, is void; and, on the bankruptcy of a person entitled to a tax credit, the entitlement to the tax credit does not pass to any trustee or other person acting on behalf of his creditors.
(2) In the application of subsection (1) to Scotland—
(a) the reference to assignment is to assignation (“assign” being construed accordingly), and
(b) the reference to the bankruptcy of a person is to the sequestration of his estate or the appointment on his estate of a judicial factor under section 41 of the Solicitors (Scotland) Act 1980 (c. 46).
The Board may give any notice which they are required or permitted to give under this Part in any manner and form which the Board consider appropriate in the circumstances.
(1) In this Part—
“child” has the meaning given by section 8(3),
“ couple ” has the meaning given by section 3(5A),
“the current year income” has the meaning given by section 7(4),
“employee” and “employer” have the meaning given by section 25(5),
...
“the income threshold” has the meaning given by section 7(1)(a),
“joint claim” has the meaning given by section 3(8),
...
“overpayment” has the meaning given by section 28(2) and (6),
“the previous year income” has the meaning given by section 7(5),
“qualifying remunerative work”, and being engaged in it, have the meaning given by regulations under section 10(2),
“qualifying young person” has the meaning given by section 8(4),
“the relevant income” has the meaning given by section 7(3),
“responsible”, in relation to a child or qualifying young person, has the meaning given by regulations under section 8(2) (for the purposes of child tax credit) or by regulations under section 10(4) (for the purposes of working tax credit),
“single claim” has the meaning given by section 3(8),
...
“tax year” means a period beginning with 6th April in one year and ending with 5th April in the next, and
...
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) The functions of the Secretary of State under—
(a) section 77 of the Social Security Contributions and Benefits Act 1992 (c. 4) (guardian’s allowance: Great Britain),
(b) Part 9 of that Act (child benefit: Great Britain), except ... paragraphs 5 and 6(1) of Schedule 10,
(c) section 80 of the Social Security Administration Act 1992 (c. 5) (overlap with benefits under legislation of other member States: Great Britain), and
(d) section 72 of the Social Security Act 1998 (c. 14) (power to reduce child benefit for lone parents: Great Britain),
are transferred to the Treasury.
(2) The functions of the Northern Ireland Department under—
(a) section 77 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (guardian’s allowance: Northern Ireland),
(b) Part 9 of that Act (child benefit: Northern Ireland), except ... paragraphs 5 and 6(1) of Schedule 10,
(c) section 76 of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (overlap with benefits under legislation of other member States: Northern Ireland), and
(d) Article 68 of the Social Security (Northern Ireland) Order 1998 (1998/1506 (N.I. 10)) (power to reduce child benefit for lone parents: Northern Ireland),
are transferred to the Treasury.
(3) The functions of the Secretary of State under Part 10 of the Social Security Administration Act 1992 (c. 5) (review and alteration of benefits: Great Britain) so far as relating to child benefit and guardian’s allowance are transferred to the Treasury.
(4) The functions of the Northern Ireland Department under sections 132 to 134of the Social Security Administration (Northern Ireland) Act 1992 (c. 8) (review and alteration of benefits: Northern Ireland) so far as relating to child benefit and guardian’s allowance are transferred to the Treasury.
(1) The functions of the Secretary of State and the Northern Ireland Department under the provisions specified in subsection (2), so far as relating to child benefit and guardian’s allowance, are transferred to the Board.
(2) The provisions referred to in subsection (1) are—
(a) the Social Security Contributions and Benefits Act 1992 (c. 4),
(b) the Social Security Administration Act 1992, except Part 13 (advisory bodies and consultation: Great Britain),
(c) the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7),
(d) the Social Security Administration (Northern Ireland) Act 1992, except Part 12 (advisory bodies and consultation: Northern Ireland),
(e) Chapter 2 of Part 1 of the Social Security Act 1998 (c. 14) (social security decisions and appeals: Great Britain),
(f) Chapter 2 of Part 2 of the Social Security (Northern Ireland) Order 1998 (1998/1506 (N.I. 10)) (social security decisions and appeals: Northern Ireland), and
(g) any subordinate legislation made under any of the provisions specified in section 49 or any of the preceding provisions of this subsection.
(3) This section has effect subject to section 49.
(1) This subsection transfers to and vests in the Treasury the property, rights and liabilities to which the Secretary of State or the Northern Ireland Department is entitled or subject in connection with functions transferred to the Treasury by section 49 immediately before they are transferred.
(2) This subsection transfers to and vests in the Board the property, rights and liabilities to which the Secretary of State or the Northern Ireland Department is entitled or subject in connection with functions transferred to the Board by section 50 immediately before they are transferred.
(3) A certificate given by the Treasury that any property has been transferred by subsection (1) is conclusive evidence of the transfer; and a certificate given by the Board that any property has been transferred by subsection (2) is conclusive evidence of the transfer.
(4) Subsections (1) and (2) have effect in relation to property, rights and liabilities in spite of any provision (of whatever nature) which would prevent or restrict transfer otherwise than by this section.
(5) Subsections (1) and (2) do not apply to contracts within subsection (6); but any term of such a contract about the provision of goods or services to the Secretary of State (or a government department) or the Northern Ireland Department is to be taken to refer also to the Board in connection with any function transferred by section 49 or 50.
(6) The contracts within this subsection are contracts for the supply of goods or services to the Secretary of State or the Northern Ireland Department—
(a) which relate partly to functions transferred by section 49 or 50 and partly to other functions, or
(b) the terms of which are wholly or partly determined by a contract within paragraph (a).
(7) Her Majesty may by Order in Council make such provision for the transfer to the statutory home civil service of persons employed in the Northern Ireland Civil Service as appears to Her Majesty to be appropriate in consequence of the transfer of functions made by sections 49 and 50.
(8) In subsection (7) “the statutory home civil service” means the civil service (excluding Her Majesty's diplomatic service) within the meaning of Chapter 1 of Part 1 of the Constitutional Reform and Governance Act 2010 (see section 1(4) of that Act).
(1) Any function covered by section 49 which is a function of making subordinate legislation may be exercised by the Treasury at any time after the passing of this Act if the subordinate legislation made in the exercise of the function comes into force after the commencement of that section.
(2) Any function covered by section 50 which is a function of making subordinate legislation may be exercised by the Board at any time after the passing of this Act if the subordinate legislation made in the exercise of the function comes into force after the commencement of that section.
(3) Nothing in section 49 or 50 affects the validity of anything done by or in relation to the Secretary of State or the Northern Ireland Department before its commencement.
(4) Anything (including legal proceedings) relating to any functions transferred by section 49, or any property, rights or liabilities transferred by section 52(1), which is in the course of being done or carried on by or in relation to the Secretary of State or the Northern Ireland Department immediately before the transfer may be continued by or in relation to the Treasury.
(5) Anything (including legal proceedings) relating to any functions transferred by section 50, or any property, rights or liabilities transferred by section 52(2), which is in the course of being done or carried on by or in relation to the Secretary of State or the Northern Ireland Department immediately before the transfer may be continued by or in relation to the Board.
(6) Anything done by the Secretary of State or the Northern Ireland Department for the purposes of or in connection with any functions transferred by section 49, or any property, rights or liabilities transferred by section 52(1), which is in effect immediately before the transfer has effect afterwards as if done by the Treasury.
(7) Anything done by the Secretary of State or the Northern Ireland Department for the purposes of or in connection with any functions transferred by section 50, or any property, rights or liabilities transferred by section 52(2), which is in effect immediately before the transfer has effect afterwards as if done by the Board.
(8) The Treasury is substituted for the Secretary of State or the Northern Ireland Department in any subordinate legislation, any contracts or other documents and any legal proceedings relating to any functions transferred by section 49, or any property, rights or liabilities transferred by section 52(1), made or commenced before the transfer.
(9) The Board are substituted for the Secretary of State or the Northern Ireland Department in any subordinate legislation, any contracts or other documents and any legal proceedings relating to any functions transferred by section 50, or any property, rights or liabilities transferred by section 52(2), made or commenced before the transfer.
(10) Any order made under section 8 of the Electronic Communications Act 2000 (c. 7) which—
(a) modifies provisions relating to child benefit or guardian’s allowance, and
(b) is in force immediately before the commencement of this subsection,
is to continue to have effect for the purposes of child benefit and guardian’s allowance, despite subsection (7) of that section, until regulations made by the Board under section 132 of the Finance Act 1999 (c. 16) which are expressed to supersede that order come into force.
(1) Insert the section set out in subsection (2)—
(a) in the Social Security Contributions and Benefits Act 1992 (c. 4) after section 145 (as section 145A), and
(b) in the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) after section 141 (as section 141A).
(2) The section is—
Entitlement after death of child
(1) If a child dies and a person is entitled to child benefit in respect of him for the week in which his death occurs, that person shall be entitled to child benefit in respect of the child for a prescribed period following that week.
(2) If the person entitled to child benefit under subsection (1) dies before the end of that prescribed period and, at the time of his death, was—
(a) a member of a married couple and living with the person to whom he was married, or
(b) a member of an unmarried couple,
that other member of the married couple or unmarried couple shall be entitled to child benefit for the period for which the dead person would have been entitled to child benefit under subsection (1) above but for his death.
(3) If a child dies before the end of the week in which he is born, subsections (1) and (2) apply in his case as if references to the person entitled to child benefit in respect of a child for the week in which his death occurs were to the person who would have been so entitled if the child had been alive at the beginning of that week (and if any conditions which were satisfied, and any facts which existed, at the time of his death were satisfied or existed then).
(4) Where a person is entitled to child benefit in respect of a child under this section, section 77 applies with the omission of subsections (4) to (6).
(5) In this section—
“married couple” means a man and a woman who are married to each other and are neither—
separated under a court order, nor
separated in circumstances in which the separation is likely to be permanent, and
“unmarried couple” means a man and a woman who are not a married couple but are living together as husband and wife.
(1) For section 146 of the Social Security Contributions and Benefits Act 1992 (c. 4) (persons outside Great Britain) substitute—
Presence in Great Britain
146 (1) No child benefit shall be payable in respect of a child for a week unless he is in Great Britain in that week.
(2) No person shall be entitled to child benefit for a week unless he is in Great Britain in that week.
(3) Circumstances may be prescribed in which a child or other person is to be treated for the purposes of this section as being, or as not being, in Great Britain.
(2) For section 142 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7) (persons outside Northern Ireland) substitute—
Presence in Northern Ireland
142 (1) No child benefit shall be payable in respect of a child for a week unless he is in Northern Ireland in that week.
(2) No person shall be entitled to child benefit for a week unless he is in Northern Ireland in that week.
(3) Circumstances may be prescribed in which a child or other person is to be treated for the purposes of this section as being, or as not being, in Northern Ireland.
In Schedule 9 to—
(a) the Social Security Contributions and Benefits Act 1992, and
(b) the Social Security Contributions and Benefits (Northern Ireland) Act 1992,
omit paragraph 4 (person not entitled to child benefit if he or other prescribed person is exempt from tax under prescribed provisions).
(1) This section applies where regulations under—
(a) section 4 or 6 of this Act,
(b) section 5 of the Social Security Administration Act 1992 (c. 5), or
(c) section 5 of the Social Security Administration (Northern Ireland) Act 1992 (c. 8),
permit or require a claim or notification relating to a tax credit, child benefit or guardian’s allowance to be made or given to a relevant authority.
(2) Where this section applies, regulations may make provision—
(a) for information or evidence relating to tax credits, child benefit or guardian’s allowance to be provided to the relevant authority (whether by persons by whom such claims and notifications are or have been made or given, by the Board or by other persons),
(b) for the giving of information or advice by a relevant authority to persons by whom such claims or notifications are or have been made or given, and
(c) for the recording, verification and holding, and the forwarding to the Board or a person providing services to the Board, of claims and notifications received by virtue of the regulations referred to in subsection (1) and information or evidence received by virtue of paragraph (a),
(3) “Relevant authority” means—
(a) the Secretary of State,
(b) the Northern Ireland Department, or
(c) a person providing services to the Secretary of State or the Northern Ireland Department.
(1) The Secretary of State may by order make as respects England and Wales and Scotland, and the Northern Ireland Department may by order make as respects Northern Ireland, any transitional provisions or savings which appear appropriate in connection with the commencement of the abolition of the increases referred to in section 1(3)(e).
(2) Subject to any provision made by virtue of subsection (1), the Treasury may by order make any transitional provisions or savings which appear appropriate in connection with the commencement of any provision of this Act.
(1) Until such day as the Treasury may by order appoint, Part 1 of this Act has effect subject to the modifications specified in this section; and an order under this subsection may include any transitional provisions or savings which appear appropriate.
(2) Except in the case of an appeal against an employer penalty, an appeal under section 38 is to—
(a) in Great Britain, the First-tier Tribunal; or
(b) in Northern Ireland, the appeal tribunal;
and in either case section 39(6) shall not apply.
(3) The function of giving a direction under section 19(10) is a function of—
(a) in Great Britain, the First-tier Tribunal; or
(b) in Northern Ireland, the appeal tribunal;
and in either case the relevant provisions of Part 5 of the Taxes Management Act 1970 shall not apply.
(4) In Northern Ireland, except in the case of an employer information penalty, proceedings under paragraph 3 of Schedule 2 are by way of information in writing, made to the appeal tribunal (rather than to the tribunal), and upon summons issued by them to the defendant to appear before them at a time and place stated in the summons; and they must hear and decide each case in a summary way.
(5) So far as is appropriate in consequence of subsections (2) to (4)—
(a) the references to the tribunal in section 19(10) and paragraphs 2 and 3(2) of Schedule 2 are to the First-tier Tribunal or the appeal tribunal, ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In Northern Ireland, an appeal under paragraph 2(2) or 4(1) of Schedule 2 from a decision of, or against the determination of a penalty by, the appeal tribunal lies to the Northern Ireland Social Security Commissioner (rather than to the Upper Tribunal).
(7) So far as is appropriate in consequence of subsection (6), the references in paragraphs 2(2) and 4 of Schedule 2 to the Upper Tribunal are to the Northern Ireland Social Security Commissioner.
(8) Regulations may apply any provision contained in—
(a) Chapter 2 of Part 1 of the Social Security Act 1998 (c. 14) (social security appeals: Great Britain),
(b) Chapter 2 of Part 2 of the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)) (social security appeals: Northern Ireland), or
(c) section 54 of the Taxes Management Act 1970 (c. 9) (settling of appeals by agreement),
in relation to appeals which, by virtue of this section, are to the First-tier Tribunal or the appeal tribunal or lie to a Northern Ireland Social Security Commissioner, but subject to such modifications as are prescribed.
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) “Appeal tribunal” means an appeal tribunal constituted under Chapter 1 of Part 2 of the Social Security (Northern Ireland) Order 1998.
(11) “Employer penalty” means—
(a) a penalty under section 31 or 32 relating to a requirement imposed by virtue of regulations under section 25, or
(b) a penalty under section 33.
(12) “Employer information penalty” means a penalty under section 32(2)(a) relating to a requirement imposed by virtue of regulations under section 25.
(13) “Northern Ireland Social Security Commissioner” meansthe Chief Social Security Commissioner or any other Social Security Commissioner appointed under the Social Security Administration (Northern Ireland) Act 1992 (c. 8) or a tribunal of two or more Commissioners constituted under Article 16(7) of the Social Security (Northern Ireland) Order 1998 (S.I. 1998/1506 (N.I. 10)).
(14) “tribunal” (other than in the expression “appeal tribunal”) shall have the meaning in section 47C of the Taxes Management Act 1970.
(1) The Northern Ireland Act 1998 (c. 47) has effect subject to the amendments in subsections (2) and (3).
(2) In Schedule 2 (excepted matters), after paragraph 10 insert—
10A Tax credits under Part 1 of the Tax Credits Act 2002.
10B Child benefit and guardian’s allowance.
(3) In section 87 (consultation and co-ordination on social security matters), after subsection (6) insert—
(6A) But this section does not apply to the legislation referred to in subsection (6) to the extent that it relates to child benefit or guardian’s allowance.
(4) For the purposes of that Act, a provision of—
(a) an Act of the Northern Ireland Assembly, or
(b) a Bill for such an Act,
which amends or repeals any of the provisions of the Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)) dealt with in Schedule 1 shall not be treated as dealing with tax credits if the Act or Bill deals with employment rights conferred otherwise than by that Schedule in the same way.
(1) Any power to make regulations under sections 3, 7 to 13, 42 and 43, and any power to make regulations under this Act prescribing a rate of interest, is exercisable by the Treasury.
(2) Any other power to make regulations under this Act is exercisable by the Board.
(3) Subject to subsection (4), any power to make regulations, orders or schemes under this Act is exercisable by statutory instrument.
(4) The power—
(a) of the Department of Health, Social Services and Public Safety to make schemes under section 12(5), and
(b) of the Northern Ireland Department to make orders under section 62(1),
is exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).
(5) Regulations may not be made under section 25 or 26 in relation to appeals in Scotland without the consent of the Scottish Ministers.
(6) Regulations may not be made under section 39(6) or 63(8) without the consent of the Lord Chancellor , the Department of Justice in Northern Ireland and the Scottish Ministers.
(7) Any power to make regulations under this Act may be exercised—
(a) in relation to all cases to which it extends, to all those cases with prescribed exceptions or to prescribed cases or classes of case,
(b) so as to make as respects the cases in relation to which it is exercised the full provision to which it extends or any less provision (whether by way of exception or otherwise),
(c) so as to make the same provision for all cases in relation to which it is exercised or different provision for different cases or classes of case or different provision as respects the same case or class of case for different purposes,
(d) so as to make provision unconditionally or subject to any prescribed condition,
(e) so as to provide for a person to exercise a discretion in dealing with any matter.
(8) Any regulations made under a power under this Act to prescribe a rate of interest may—
(a) either themselves specify a rate of interest or make provision for any such rate to be determined by reference to such rate or the average of such rates as may be referred to in the regulations,
(b) provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,
(c) provide for rates arrived at by reference to averages to be rounded up or down,
(d) provide for circumstances in which alteration of a rate of interest is or is not to take place, and
(e) provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day as well as from or from after that day.
(9) Any power to make regulations or a scheme under this Act includes power to make any incidental, supplementary, consequential or transitional provision which appears appropriate for the purposes of, or in connection with, the regulations or scheme.
(1) No order or regulations to which this subsection applies may be made unless a draft of the instrument containing the order or regulations (whether or not together with other provisions) has been laid before, and approved by a resolution of, each House of Parliament.
(2) Subsection (1) applies to—
(za) an order made by the Treasury under section 36A(8) or 36C(9),
(zb) regulations made under section 36A(5) or 36C(4),
(a) regulations prescribing monetary amounts that are required to be reviewed under section 41,
(b) regulations made by virtue of subsection (2) of section 12 prescribing the amount in excess of which charges are not taken into account for the purposes of that subsection, and
(c) the first regulations made under sections 7(8) and (9), 9, 11, 12 and 13(2).
(3) A statutory instrument containing—
(a) an order or regulations under this Act,
(b) a scheme made by the Secretary of State under section 12(5), or
(c) an Order in Council under section 52(7),
is (unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament) subject to annulment in pursuance of a resolution of either House of Parliament.
(4) A statutory instrument containing a scheme made by the Scottish Ministers under section 12(5) is subject to annulment in pursuance of a resolution of the Scottish Parliament.
(5) A statutory rule containing a scheme made by the Department of Health, Social Services and Public Safety under section 12(5) is subject to negative resolution within the meaning of section 41(6) of the Interpretation Act (Northern Ireland) 1954 (c. 33 (N.I.)).
In this Act—
“the Board” means the Commissioners of Inland Revenue,
“cautioned”, in relation to any person and any offence, means cautioned after the person concerned has admitted the offence; and “caution” is to be interpreted accordingly;
“modifications” includes alterations, additions and omissions, and “modifies” is to be construed accordingly,
“the Northern Ireland Department” means the Department for Social Development in Northern Ireland,
“prescribed” means prescribed by regulations, and
“tax credit” and “tax credits” have the meanings given by section 1(2).
(1) There is to be paid out of money provided by Parliament—
(a) any expenditure of a Minister of the Crown or government department under this Act, and
(b) any increase attributable to this Act in sums payable out of money provided by Parliament under any other Act.
(2) There is to be paid into the Consolidated Fund any sums received by a government department by virtue of this Act (apart from any required by any other enactment to be paid into the National Insurance Fund).
(1) The amendments, repeals and revocations made by this Act have the same extent as the enactments or instruments to which they relate.
(2) Subject to that, this Act extends to Northern Ireland (as well as to England and Wales and Scotland).
Section 27
Right not to suffer detriment: Great Britain
1 (1) The Employment Rights Act 1996 (c. 18) has effect subject to the following amendments.
(2) After section 47C insert—
Tax credits
47D (1) An employee has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by his employer, done on the ground that—
(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 25 of the Tax Credits Act 2002,
(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under that Act, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right, or
(c) the employee is entitled, or will or may be entitled, to working tax credit.
(2) It is immaterial for the purposes of subsection (1)(a) or (b)—
(a) whether or not the employee has the right, or
(b) whether or not the right has been infringed,
but, for those provisions to apply, the claim to the right and (if applicable) the claim that it has been infringed must be made in good faith.
(3) Subsections (1) and (2) apply to a person who is not an employee within the meaning of this Act but who is an employee within the meaning of section 25 of the Tax Credits Act 2002, with references to his employer in those subsections (and sections 48(2) and (4) and 49(1)) being construed in accordance with that section.
(4) Subsections (1) and (2) do not apply to an employee if the detriment in question amounts to dismissal (within the meaning of Part 10).
(3) In section 48 (complaints to employment tribunals), after subsection (1A) insert—
(1B) A person may present a complaint to an employment tribunal that he has been subjected to a detriment in contravention of section 47D.
(4) In section 49 (remedies), at the end insert—
(7) Where—
(a) the complaint is made under section 48(1B) by a person who is not an employee, and
(b) the detriment to which he is subjected is the termination of his contract with the person who is his employer for the purposes of section 25 of the Tax Credits Act 2002,
any compensation must not exceed the compensation that would be payable under Chapter 2 of Part 10 if the complainant had been an employee and had been dismissed for the reason specified in section 104B.
(5) In section 192(2)(aa) (armed forces)—
(a) for “section 45A,” substitute “ sections 45A, 47C and 47D, ”, and
(b) for “that section” substitute “ those sections ”.
(6) In—
(a) section 194(2)(c) (House of Lords staff), and
(b) section 195(2)(c) (House of Commons staff),
for “and 47C” substitute “ , 47C and 47D ”.
Right not to suffer detriment: Northern Ireland
2 (1) The Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)) has effect subject to the following amendments.
(2) After Article 70C insert—
Tax credits
70D (1) An employee has the right not to be subjected to any detriment by any act, or any deliberate failure to act, by his employer, done on the ground that—
(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 25 of the Tax Credits Act 2002,
(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under that Act, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right, or
(c) the employee is entitled, or will or may be entitled, to working tax credit.
(2) It is immaterial for the purposes of paragraph (1)(a) or (b)—
(a) whether or not the employee has the right, or
(b) whether or not the right has been infringed,
but, for those provisions to apply, the claim to the right and (if applicable) the claim that it has been infringed must be made in good faith.
(3) Paragraphs (1) and (2) apply to a person who is not an employee within the meaning of this Order but who is an employee within the meaning of section 25 of the Tax Credits Act 2002, with references to his employer in those paragraphs (and Articles 71(2) and (4) and 72(1)) being construed in accordance with that section.
(4) Paragraphs (1) and (2) do not apply to an employee if the detriment in question amounts to dismissal (within the meaning of Part 11).
(3) In Article 71 (complaints to industrial tribunals), after paragraph (1A) insert—
(1B) A person may present a complaint to an industrial tribunal that he has been subjected to a detriment in contravention of Article 70D.
(4) In Article 72 (remedies), at the end insert—
(7) Where—
(a) the complaint is made under Article 71(1B) by a person who is not an employee, and
(b) the detriment to which he is subjected is the termination of his contract with the person who is his employer for the purposes of section 25 of the Tax Credits Act 2002,
any compensation must not exceed the compensation that would be payable under Chapter 2 of Part 11 if the complainant had been an employee and had been dismissed for the reason specified in Article 135B.
(5) In Article 237(2)(aa) (armed forces)—
(a) for “Article 68A” substitute “ Articles 68A, 70C and 70D ”, and
(b) for “that Article” substitute “ those Articles ”.
Right not to be unfairly dismissed: Great Britain
3 (1) The Employment Rights Act 1996 (c. 18) has effect subject to the following amendments.
(2) For section 104B substitute—
Tax credits
104B (1) An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that—
(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 25 of the Tax Credits Act 2002,
(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under that Act, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right, or
(c) the employee is entitled, or will or may be entitled, to working tax credit.
(2) It is immaterial for the purposes of subsection (1)(a) or (b)—
(a) whether or not the employee has the right, or
(b) whether or not the right has been infringed,
but, for those provisions to apply, the claim to the right and (if applicable) the claim that it has been infringed must be made in good faith.
(3) In section 105 (redundancy as unfair dismissal), after subsection (7A) continue to insert—
(7B) This subsection applies if the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was one of those specified in subsection (1) of section 104B (read with subsection (2) of that section).
(4) In section 108(3) (cases where no qualifying period of employment is required) and section 109(2) (cases where upper age limit does not apply), after paragraph (gg) continue to insert—
(gh) subsection (1) of section 104B (read with subsection (2) of that section) applies,
.
Right not to be unfairly dismissed: Northern Ireland
4 (1) The Employment Rights (Northern Ireland) Order 1996 (S.I. 1996/1919 (N.I. 16)) has effect subject to the following amendments.
(2) For Article 135B substitute—
Tax credits
135B (1) An employee who is dismissed shall be regarded for the purposes of this Part as unfairly dismissed if the reason (or, if more than one, the principal reason) for the dismissal is that—
(a) any action was taken, or was proposed to be taken, by or on behalf of the employee with a view to enforcing, or otherwise securing the benefit of, a right conferred on the employee by regulations under section 25 of the Tax Credits Act 2002,
(b) a penalty was imposed on the employer, or proceedings for a penalty were brought against him, under that Act, as a result of action taken by or on behalf of the employee for the purpose of enforcing, or otherwise securing the benefit of, such a right, or
(c) the employee is entitled, or will or may be entitled, to working tax credit.
(2) It is immaterial for the purposes of paragraph (1)(a) or (b)—
(a) whether or not the employee has the right, or
(b) whether or not the right has been infringed,
but, for those provisions to apply, the claim to the right and (if applicable) the claim that it has been infringed must be made in good faith.
(3) In Article 137 (redundancy as unfair dismissal), after paragraph (6A) continue to insert—
(6B) This paragraph applies if the reason (or, if more than one, the principal reason) for which the employee was selected for dismissal was one of those specified in paragraph (1) of Article 135B (read with paragraph (2) of that Article).
(4) In Article 140(3) (cases where no qualifying period of employment is required) and Article 141(2) (cases where upper age limit does not apply), after sub-paragraph (ff) continue to insert—
(fg) paragraph (1) of Article 135B (read with paragraph (2) of that Article) applies,
.