The Child Tax Credit Regulations 2002

Made: 30th July 2002

Coming into force in accordance with regulation 1

Whereas a draft of this instrument, which contains the first regulations made under section 9 of the Tax Credits Act 2002, has been laid before, and approved by resolution of, each House of Parliament:

Now, therefore, the Treasury, in exercise of the powers conferred on them by sections 8, 9, 65 and 67 of the Tax Credits Act 2002, hereby make the following Regulations:

Citation, commencement and effect

1

These Regulations may be cited as the Child Tax Credit Regulations 2002 and shall come into force—

• (a) for the purpose of enabling claims to be made, on 1st August 2002;

• (b) for the purpose of enabling awards to be made, on 1st January 2003; and

• (c) for all other purposes on 6th April 2003;

and shall have effect for the tax year beginning on 6th April 2003 and subsequent tax years.

Interpretation

2

• (1) In these Regulations, unless the context otherwise requires—

• “A”, as a noun, has the meaning given by regulation 7(2A);

• “the Act” means the Tax Credits Act 2002;

• “advanced education” means ...—a course in preparation for a degree, a diploma of higher education, a higher national diploma, a higher national diploma or higher national certificate of Edexcel or the Scottish Qualifications Authority, or a teaching qualification; orany other course which is of a standard above ordinary national diploma, a national diploma or national certificate of Edexcel ..., a general certificate of education (advanced level), or Scottish national qualifications at higher or advanced higher level;

• “approved training” has the meaning given by regulation 1(3) of the Child Benefit (General) Regulations 2006;

• “armed forces independence payment’’ means armed forces independence payment under the Armed Forces and Reserve Forces (Compensation Scheme) Order 2011;

• “the Board” means the Commissioners for Her Majesty’s Revenue and Customs;

• “the Careers Service” means—in England and Wales, a person with whom the Secretary of State or the National Assembly of Wales has made arrangements under section 10(1) of the Employment Act , and a local authority to whom the Secretary of State or the National Assembly of Wales has given a direction under section 10(2) of that Act,in Scotland, a person with whom the Scottish Ministers have made arrangements under section 10(1) of the Employment Act and any education authority to which a direction has been given by the Scottish Ministers under section 10(2) of that Act, and...

• “child” means a person who has not attained the age of sixteen ...;

• “claimant” has the meaning in section 9(8) of the Act, except in regulations 7 and 9 to 14 (for which see regulations 7(1) and 13(13) to (15));

• “the Connexions Service” means a person of any description with whom the Secretary of State has made an arrangement under section 114(2)(a) of the Learning and Skills Act 2000 and section 10(1) of the Employment Act, and any person to whom he has given a direction under section 114(2)(b) of the former Act and section 10(2) of the latter Act;

• “the Contributions and Benefits Act” means the Social Security Contributions and Benefits Act 1992 ;

• “couple” has the meaning given by section 3(5A) of the Act;

• “custodial sentence”—in England and Wales, has the meaning in section 76 of the Powers of Criminal Courts (Sentencing) Act 2000 or section 222 of the Sentencing Code,in Scotland, means detention under a sentence imposed by a court under sections 44, 205, 207 or 208 of the Criminal Procedure (Scotland) Act 1995 , andin Northern Ireland, means a custodial sentence under the Criminal Justice (Children) (Northern Ireland) Order 1998 ;

• “disability living allowance” means a disability living allowance under section 71 of the Contributions and Benefits Act;

• “the Employment Act” means the Employment and Training Act 1973;

• “the family element of child tax credit” and “the individual element of child tax credit” shall be construed in accordance with section 9(3) of the Act;

• ...

• “income support” means income support under section 124 of the Contributions and Benefits Act;

• “joint claim” and “single claim” shall be construed in accordance with section 3(8) of the Act;

• “looked after by a local authority” has the meaning in section 22 of the Children Act 1989 , section 74 of the Social Services and Well-being (Wales) Act 2014, section 17(6) of the Children (Scotland) Act 1995 or (in Northern Ireland) Article 25 of the Children (Northern Ireland) Order 1995 (with the modification that for the reference to a local authority there is substituted a reference to an authority within the meaning in Article 2 of that Order) , and (in Scotland) includes a child in respect of which a child assessment order within the meaning of section 35 of the Children’s Hearings (Scotland) Act 2011 has been made or a child protection order within the meaning of section 37 of that Act has been made.;

• the “main responsibility test” has the meaning given in Rule 2.2. of regulation 3;

• the “normally living with test” has the meaning given in Rule 1.1. of regulation 3;

• “old style JSA” means a jobseeker’s allowance under the Jobseekers Act 1995 as that Act has effect apart from the amendments made by Part 1 of Schedule 14 to the Welfare Reform Act 2012 that remove references to an income-based allowance;

• “Part 1” means Part 1 of the Act;

• “patient” means a person (other than a person who is serving a custodial sentence) who is regarded as receiving free in-patient treatment within the meaning of the Social Security (Hospital In-patients) Regulations 1975 , or the Social Security (Hospital In-patients) Regulations (Northern Ireland) 1975 ;

• “personal independence payment” means personal independence payment under Part 4 of the Welfare Reform Act 2012;

• “placing for adoption” means placing for adoption in accordance with—the Adoption Agencies Regulations 2005,the Adoption Agencies (Wales) Regulations 2005,the Adoption Agencies (Scotland) Regulations 2009, orthe Adoption Agencies Regulations (Northern Ireland) 1989 ;

• “qualifying body” means–the Careers Service or Connexions Service;the Ministry of Defence;in Northern Ireland, the Department for Communities, the Department for the Economy or the Education Authority; orfor the purposes of applying Council Regulation (EEC) No. 1408/71 and Regulation (EC) No 883/2004 of the European Parliament and of the Council, any corresponding body in another member state;

• “qualifying young person” means a person, other than a child, who—has not attained the age of twenty, andsatisfies the conditions in regulation 5(3) and (4);

• ...

• ...

• “remunerative work” means work which is—done for payment or in expectation of payment,undertaken for not less than 24 hours a week, calculated in accordance with regulation 4(3) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 , andnot excluded from the meaning of engagement in remunerative work by regulation 4(2) of those Regulations;and other expressions have the same meanings as defined in the Act.

• “step-parent”, in relation to A, means a person who is not A’s parent but—is a member of a couple, the other member of which is a parent of A, where both are responsible for A; orwas previously a member of—a couple, the other member of which was a parent of A, ora polygamous unit (within the meaning of the Tax Credits (Polygamous Marriages) Regulations 2003), another member of which was a parent of A,if immediately prior to ceasing to be a member of that couple or that polygamous unit the person was, and has since remained, responsible for A;

• (2) In the application of these Regulations to Northern Ireland, a reference to a provision of an enactment which applies only to Great Britain or England and Wales, shall be construed, so far as necessary, as including a reference to the corresponding enactment applying to Northern Ireland.

Circumstances in which a person is or is not responsible for a child or qualifying young person

3

• (1) For the purposes of child tax credit the circumstances in which a person is or is not responsible for a child or qualifying young person shall be determined in accordance with the following Rules.

• Rule 1A person shall be treated as responsible for a child or qualifying young person who is normally living with him (the “normally living with test”).This Rule is subject to Rules 2 to 4.

• Rule 2 (Competing claims)This Rule applies where—a child or qualifying young person normally lives with two or more persons in—different households, orthe same household, where those persons are not limited to the members of a ... couple, ora combination of (i) and (ii), andtwo or more of those persons make separate claims (that is, not a single joint claim made by a ... couple) for child tax credit in respect of the child or qualifying young person.The child or qualifying young person shall be treated as the responsibility of—only one of those persons making such claims, andwhichever of them has (comparing between them) the main responsibility for him (the “main responsibility test”),subject to Rules 3 and 4.

• Rule 3The persons mentioned in Rule 2.2. (other than the child or qualifying young person) may jointly elect as to which of them satisfies the main responsibility test for the child or qualifying young person, and in default of agreement the Board may determine that question on the information available to them at the time of their determination.

• Rule 4A child or qualifying young person shall be treated as not being the responsibility of any person during any period in which any of the following Cases applies.Case AThe child or qualifying young person is provided with, or placed in, accommodation under Part III of the Children Act 1989 , Parts 4 or 6 of the Social Services and Well-being (Wales) Act 2014, Part II of the Children (Scotland) Act 1995 by virtue of a requirement in a child assessment order within the meaning of section 35 of the Children’s Hearings (Scotland) Act 2011, a child protection order within the meaning of section 37 of that Act, a compulsory supervision order within the meaning of section 83 of that Act or an interim compulsory supervision order within the meaning of section 86 of that Act, or Part IV of the Children (Northern Ireland) Order 1995 , and the cost of that child’s or qualifying young person’s accommodation or maintenance is borne wholly or partly—out of local authority funds under section 22C(10) ... of the Children Act 1989 or section 81(13) of the Social Services and Well-being (Wales) Act 2014 or regulation 33 of the Looked After Children (Scotland) Regulations 2009,in Northern Ireland, by an authority, within the meaning in Article 2, and under Article 27, of that Order, orout of other public funds.... In the circumstances prescribed in regulation 3 of the Child Benefit (General) Regulations 1976 , or regulation 3 of the Child Benefit (General) Regulations (Northern Ireland) 1979 .Case BThe child or qualifying young person—is being looked after by a local authority, andhas been placed for adoption by that authority in the home of a person proposing to adopt him, and a local authority is making a payment in respect of the child’s or qualifying young person’s accommodation or maintenance, or both, under section 22C(10) ... of the Children Act 1989, section 81(13) of the Social Services and Well-being (Wales) Act 2014, regulation 33 of the Looked After Children (Scotland) Regulations 2009 or Article 27 of the Children (Northern Ireland) Order 1995.This Case applies in Northern Ireland with the modification that for references to a local authority there are substituted references to an authority (within the meaning in Article 2 of that Order).Case CA custodial sentence—for life,without limit of time,of detention during Her Majesty’s pleasure,in Northern Ireland, of detention during the pleasure of the Secretary of State, orfor a term or period of more than four months,has been passed on the child or qualifying young person.Case DThe ... qualifying young person claims and is awarded child tax credit in his or her own right, in respect of a child for whom he or she is responsible, for that period. Case E... The qualifying young person, claims incapacity benefit in his or her own right and that benefit is paid to or in respect of him or her for that period.This Case does not apply at any time (“the later time”) during a period of incapacity for work which began before 6th April 2004 in the case of a person in respect of whom, at a time—during that period of incapacity, andbefore that date,both incapacity benefit or contributory employment and support allowance payable under Part 1 of the Welfare Reform Act 2007 and child tax credit were payable, if child tax credit has been payable in respect of him or her continuously since 5th April 2004 until that later time.For the purposes of this Case “period of incapacity” shall be construed in accordance with section 30C of the 1992 Act (incapacity benefit: days and periods of incapacity for work) but disregarding subsections (5) and (5A) of that section. Case F ... The qualifying young person claims and receives working tax credit in his or her own right (whether alone or on a joint claim).... Case G The qualifying young person has a spouse, civil partner or partner with whom they are living and the spouse, civil partner or partner is not in full-time education or approved training as provided for under regulation 5(3). Case H The responsible person is the spouse, civil partner or partner of a qualifying young person with whom they are living. Cases G and H do not apply to persons in receipt of child tax credit for a qualifying young person who is living with a partner on the day before 1st September 2008. Where a child or qualifying young person is in residential accommodation referred to in regulation 9 of the Child Benefit (General) Regulations 2006 and in the circumstances prescribed in paragraphs (a) or (b) of that regulation, he shall be treated as being the responsibility of any person who was treated as being responsible for him immediately before he entered that accommodation.

• (2) Where—

• (a) a claimant is treated as responsible for a child or qualifying young person by virtue of the preceding Rules, and

• (b) the child or qualifying young person has a child of his or her own, normally living with him or her,

the claimant shall also be treated as responsible for, and as having made a claim for child tax credit in respect of, the child of the child or qualifying young person (but without prejudice to the facts as to which of them is mainly responsible for that child).

Rule 1

1.1

A person shall be treated as responsible for a child or qualifying young person who is normally living with him (the “normally living with test”).

1.2

This Rule is subject to Rules 2 to 4.

Rule 2 (Competing claims)

2.1

This Rule applies where—

• (a) a child or qualifying young person normally lives with two or more persons in—

• (i) different households, or

• (ii) the same household, where those persons are not limited to the members of a married couple or unmarried couple, or

• (iii) a combination of (i) and (ii), and

• (b) two or more of those persons make separate claims (that is, not a single joint claim made by a married couple or unmarried couple) for child tax credit in respect of the child or qualifying young person.

2.2

The child or qualifying young person shall be treated as the responsibility of—

• (a) only one of those persons making such claims, and

• (b) whichever of them has (comparing between them) the main responsibility for him (the “main responsibility test”),

subject to Rules 3 and 4.

Rule 3

3.1

The persons mentioned in Rule 2.2. (other than the child or qualifying young person) may jointly elect as to which of them satisfies the main responsibility test for the child or qualifying young person, and in default of agreement the Board may determine that question on the information available to them at the time of their determination.

Rule 4

4.1

A child or qualifying young person shall be treated as not being the responsibility of any person during any period in which any of the following Cases applies.