CBTM03110 – Payments: Extinguishment of right to a payment if it is not obtained within the prescribed time limit

Child Benefit and Guardian’s Allowance (Administration) Regulations 2003, regulation 26

A person’s right to any payment of Child Benefit or Guardian’s Allowance ends (is ‘extinguished’) if they do not obtain that payment within twelve months of the date that right arose.

Where payment is by instrument of payment (such as by cashcheque, formerly known as giro, or order book) the right to payment is treated as arising on the date on it. For replacement instruments of payment, the right to payment is treated as arising on the date of the last one issued.

Where payment is by way of direct credit transfer to a bank or other account, the person’s right to the payment arises on the due date of the direct credit transfer.

Where no instrument of payment has been issued but Her Majesty’s Revenue & Customs have given or sent notice (either verbally or in writing) that the sum is available for collection, the right to payment is treated as arising on the date the notice is given or, if more than one notice is given, on the date of the first notice.

Where none of the above applies, Her Majesty’s Revenue & Customs shall determine the date a person’s right to payment is treated as arising.

These rules are effective even if the amount contained within the instrument or notice is more or less than the amount the person has the right to receive.

Calculation of the 12 month period

R(S)7/51

The date on which the right to payment arose should be excluded from the calculation of the 12 month period, eg. 12 months from 1.12.03 runs up to and including 1.12.04.

Dates of instruments of payment

The date of an instrument of payment is either

• the date of its issue

or

• the date specified on it for the payment of the sum, if later

Extension of the 12 month period

The 12 month “extinguishment” period can be extended if Her Majesty’s Revenue & Customs are satisfied that

• they have received a written request outside the 12 month period
• no instrument of payment has been issued
• no direct credit transfer has been made
• a previously issued instrument of payment has been returned and no replacement has been issued

and

• the claimant shows good cause for a period starting within the 12 month period to the date the written request is received, for not giving notice earlier.

Dates of instruments of payment

The date of an instrument of payment is either:

• the date of issue of the instrument, or
• if it is later than the date of issue, the earliest date specified in the instrument on which the payment may be obtained
• where the payment is by direct credit transfer to a bank or other account, the due date of the direct credit transfer

The twelve-month ‘extinguishment’ period of right to a payment of Child Benefit or Guardian’s Allowance can be extended if:

• Her Majesty’s Revenue & Customs are satisfied that the claimant or person acting on their behalf has shown in writing they had continuous good cause for not contacting the appropriate office about the payment;

and

• no payment has been made (either by direct credit transfer or another instrument of payment)