TCTM08304 - Payment of Tax Credits: Overpayments: Recovery of overpayments of tax credits from other payments of tax credit

Tax Credits (Payment by the Commissioners) Regulations 2002 Regulation 12A

Where the Commissioners for HM Revenue & Customs intends to recover an overpayment of tax credits from other payments of tax credits the following maximum rates of recovery apply:

• where the only amount of tax credits to which the person is, or, in the case of a joint claim, the persons are, entitled, is the family element of Child Tax Credit, 100% of that tax credit
• where the total amount of tax credits to which the person is, or, in the case of a joint claim, the persons are, entitled is not subject to reduction—

• • because they are in receipt of a Social Security benefit (section 7(2) of the Tax Credits Act 2002); or
  • because their income for the relevant year does not exceed the relevant income threshold prescribed in his or their case in regulation 3 of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002;

• in any other case, 25% of the tax credits to which the person is, or in the case of a joint claim, the persons are, entitled.