Tax credit support for a child/qualifying young person is intended to be provided by either Child Tax Credit (CTC) or Working Tax Credit (WTC). CTC should not be paid to a claimant in respect of a child/qualifying young person who is getting WTC in their own right (whether alone or as part of a joint claim with a spouse or partner), as this would result in two amounts of tax credit support for the same person, known as “double provision”.
However, the current CTC regulations unintentionally allow some claimants to receive CTC for a child/qualifying young person who is:
The Government is, therefore, amending the CTC regulations to prevent the payment of double provision. With effect from 24 May 2006, a person will not be able to claim and receive CTC for a child/qualifying young person who is getting WTC in their own right, whether alone or as part of a joint claim with a spouse or partner.
We are aware that there may be some people who may have been entitled to double provision, but have had this aspect of their tax credits claim rejected. Although we are amending the regulations, we will ensure that these people receive any payment they should have been entitled to. Later this year, we will start to identify and contact these claimants. We will then begin the process to pay them their full legal entitlement. They do not need to do anything. We will contact them.
Published guidance states that claimants will not be treated as responsible for a child who has claimed tax credits in their own right. If you believe that you have been adversely affected by this guidance or the matters outlined in this note, but have not made a claim, please contact the Tax Credits Helpline.
If you have any questions or comments about the information in this note, please:
Our Helplines are open between 8.00am and 8.00pm, seven days a week (except
Christmas Day, Boxing Day, New Year’s Day and Easter Sunday).
