Tax Credits Act 2002 section 36B

Section 36A: supplementary

Section 36B provides supplementary rules for when a section 36A restriction on working tax credit is reversed or adjusted, and clarifies what counts as a conviction for these purposes.

• If a conviction that triggered a loss of working tax credit under section 36A is later quashed, the claimant must be put back in the position they would have been in had the restriction never applied — all necessary payments and adjustments must be made.
• Similarly, if a person's agreement to pay a penalty (which triggered the restriction) is later withdrawn, or the related overpayment is found on appeal not to be recoverable, the restriction is unwound and all necessary payments and adjustments must be made.
• Where the overpayment amount underlying a penalty agreement is revised on appeal, the original restriction ceases to apply; if the person then agrees to a new penalty on the revised overpayment or receives a caution for the same offence, a fresh disqualification period begins but is reduced by however many days of the original disqualification period had already been served.
• For these purposes, the date of conviction is the date the person was found guilty (not the sentencing date), and "conviction" includes absolute or conditional discharges and Northern Ireland convictions.

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