Tax Administration Act 1994

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80KW Effect of extra instalment on entitlement to tax credit

(1)

This section applies to a person who—

(a)

is entitled to a WFF tax credit or minimum family tax credit for the whole or part of a tax year; and

(b)

receives a payment under either section 80KI or 80KN of an instalment of the credit for each period of a fortnight or a week in the tax year, as applicable; and

(c)

as a consequence of the year not being divided into an exact number of fortnights or weeks,—

(i)

receives in the tax year 27 instalments corresponding to a period of a fortnight; or

(ii)

may have received in the tax year 53 instalments corresponding to a period of a week.

(2)

Subsection (3) applies—

(a)

for the purposes of section MF 6 of the Income Tax Act 2007; and

(b)

when the person has received payments for the whole of a tax year in 27 instalments as described in subsection (1)(c)(i).

(3)

The person is entitled to a tax credit for the tax year of an amount calculated using the formula—

tax credit + ((final instalment − parental tax credit) × 13 ÷ 14).

(4)

In the formula in subsection (3),—

(a)

tax credit is the amount of the tax credit for the tax year calculated for the person under—

(i)

section MD 1 of the Income Tax Act 2007, if the person is entitled to a WFF tax credit:

(ii)

section ME 1 of that Act, if the person is entitled to the minimum family tax credit:

(b)

final instalment is the amount of the final instalment received by the person in the tax year:

(c)

parental tax credit is the amount of any parental tax credit that is included in the final instalment received by the person in the tax year.

(5)

Subsection (6) applies—

(a)

for the purposes of section MF 6 of the Income Tax Act 2007; and

(b)

when the person has received payments for the whole of a tax year in 53 instalments as described in subsection (1)(c)(ii).

(6)

The person is entitled to a tax credit for the tax year equal to an amount calculated using the formula—

(tax credit − parental tax credit) × 53 ÷ 52.

(7)

In the formula in subsection (6),—

(a)

tax credit is the amount of the tax credit for the tax year calculated for the person under—

(i)

section MD 1 of the Income Tax Act 2007, if the person is entitled to a WFF tax credit:

(ii)

section ME 1 of that Act, if the person is entitled to the minimum family tax credit:

(b)

parental tax credit is the total amount of parental tax credit to which the person is entitled for the tax year calculated under section MD 12 of the Income Tax Act 2007.

Compare: 2004 No 35 s KD 7A

Section 80KW: inserted, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).

Section 80KW(1)(a): amended, on 1 April 2008, by section 219(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(1)(b): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 80KW(2)(b): replaced, on 1 April 2008, by section 219(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(2)(b): amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 80KW(4)(a)(i): amended, on 1 April 2008, by section 219(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(4)(a)(ii): amended, on 1 April 2008, by section 219(4) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(5)(b): replaced, on 1 April 2008, by section 219(5) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(5)(b): amended (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 80KW(6) formula: replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(4) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section 80KW(7)(a)(i): amended, on 1 April 2008, by section 219(6) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(7)(a)(ii): amended, on 1 April 2008, by section 219(7) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section 80KW(7)(b): replaced (with effect on 1 April 2008), on 6 October 2009 (applying for 2008–09 and later income years), by section 637(5) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).