Tax Credits Act 2002 section 21C

Late review: award of relevant disability benefits

Section 21C provides a mechanism for HMRC to review a tax credits decision when a person is subsequently awarded a qualifying disability benefit that relates to the same tax year as the original decision.

• Where a person is awarded a relevant disability benefit for a tax year covered by a previous tax credits decision, HMRC must review that decision if notified within one month of the benefit being awarded.
• The review is limited to considering whether the original tax credits decision should be upheld, varied, or cancelled as a result of the disability benefit award.
• HMRC must carry out the review as soon as reasonably practicable and notify the person of the outcome, including any variation and the reasons for the conclusion.
• Relevant disability benefits include a wide range of payments such as personal independence payment, disability living allowance, attendance allowance, employment and support allowance, and armed forces independence payment, among others.