MD 12B Additional parental tax credit amount included in lump sum if 70-day period crosses 2 tax years
When this section applies

(1)

This section applies when—

(a)

a person is entitled under section MD 11 to a parental tax credit for a parental entitlement period; and

(b)

the credit is paid in a lump sum for the tax year of the birth; and

(c)

the birth occurs less than 70 days before the end of the tax year; and

(d)

a day in an entitlement period is in the parental entitlement period.

Amount of additional parental tax credit

(2)

An additional amount of parental tax credit is calculated for the tax year of the birth using the formula—

daily parental tax credit amount × extra entitlement days.

Definition of items in formula

(3)

In the formula in subsection (2),—

(a)

daily parental tax credit amount is the amount of parental tax credit that the person would be entitled to for an entitlement period consisting of—

(i)

the last day of the last entitlement period in the part of the parental entitlement period in the tax year of the birth, if there is an entitlement period in that part of the parental entitlement period; or

(ii)

the first day of the first entitlement period in the part of the parental entitlement period in the tax year after the tax year of the birth, if subparagraph (i) does not apply:

(b)

extra entitlement days is the number of days, each of which is—

(i)

in the parental entitlement period; and

(ii)

in an entitlement period in the tax year following the tax year of the birth.

Defined in this Act: amount, entitlement period, parental entitlement period, parental tax credit, pay, tax year

Section MD 12B: inserted (with effect on 1 April 2008), on 30 March 2017, by section 172(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12B heading: amended (with effect on 1 April 2015 and applying for dependent children born on or after that date), on 30 March 2017, by section 172(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section MD 12B(1)(c): amended (with effect on 1 April 2015 and applying for dependent children born on or after that date), on 30 March 2017, by section 172(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).