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Neutral Citation Number:
Reported Number:	R(TC)1/07
File Number:	CSTC 724 2006
Appellant:
Respondent:
Judge/Commissioner:	Judge D. J. May Q.C.
Date Of Decision:	22/03/2007
Date Added:	05/04/2007
Main Category:	Tax credits and family credit
Main Subcategory:	couples and joint claims
Secondary Category:
Secondary Subcategory:
Notes:	Couples and joint claims – whether claim by single person can be treated as a joint claim by a cohabitee The claimant had made a claim for tax credits as a single person on behalf of herself and her child. Evidence subsequently emerged that the claimant was living as part of an unmarried couple and as a result it was decided that she was not entitled to tax credits. The claimant appealed to a tribunal which upheld the appeal to a limited extent and remitted the case to Her Majesty’s Revenue and Customs (HMRC) to recalculate her entitlement as part of an unmarried couple. HMRC appealed to the Commissioner on the basis that the tribunal had erred in applying the provisions of section 16 of the Tax Credits Act 2002 (the Act), which deals with awards of tax credit, rather than section 19 of that Act which deals with entitlement. Held, allowing the appeal, that: 1. section 3(3)(a) which deals with claims by couples and section 3(3)(b) which deals with claims by single persons are mutually exclusive (CTC/3864/2004 cited with approval) (paragraphs 14 and 16); 2. a cohabitee who had not been a party to a claim for a tax credit could not be treated as having applied for a tax credit and to have acquired potential liabilities arising from the claim. Section 3 of the Act did not allow the tribunal to remit the case to HMRC for amendment on that basis (paragraph 16); 3. section 16 of the Act provides that awards of tax credit can be amended or terminated. However the decisions in this case were made under section 19(3) of the Act which relates to entitlement only (paragraph 18).
Decision(s) to Download:	R(TC) 1-07 ws.doc