TCTM11005 - Transition to Universal Credit: Termination of tax credit awards: New claimant partner

The Universal Credit (Transitional Provisions) Regulations 2014, Regulation 7
The Universal Credit (Transitional Provisions) Regulations 2014, Regulation 11

Where a tax credit claimant forms a couple with a universal credit recipient entitlement to tax credits will end on the day before the couple are jointly entitled to universal credit.

During the tax credit renewal period a person may be treated as having made a claim for tax credits.

Where a new claimant partner in a universal credit award is treated as having an ongoing tax credits award by virtue of Regulation 11 of the Universal Credit (Transitional Provisions) Regulations 2014 (see TCTM11007), then they are treated as having made a new tax credits claim for the current year, whether or not they actually have made such a claim. The circumstances where this applies are where a final notice has been given (s17 notice) and

  • the person did not make a declaration in response to provision included in that notice by virtue of section 17(2)(a), (4)(a) or (6)(a) of the Tax Credits Act 2002, or any combination of those provisions, by the date specified in the notice
  • the person was given due notice that payments of tax credit under section 24(4) of the Tax Credits Act 2002 had ceased due to his or her failure to make the declaration; and
  • notification of formation of a couple with a person entitled to universal credit is given to the Secretary of State during that period.

Any award made under such a deemed claim, terminates on the day before the start of the joint award of universal credit.

Example:

Miss Smith had an ongoing award of tax credits. Her s17 notice was issued on 29th April 2021. Miss Smith forms a couple with Mr. Jones who is a UC claimant. Miss Smith moves in with Mr. Jones on 4th July 2021. Miss Smith does not respond to the s17 notice. Even though she has not made a new claim to tax credits for the 2021/2022 tax year, because she has made a claim to universal credit, she is treated as having made a claim to tax credits. Miss Jones is awarded tax credits from 6th April 2021 to 3rd July 2021.