Tax Credits Act 2002 section 45

Inalienability

Section 45 establishes that tax credits cannot be transferred to another person or used as security for a debt, and that entitlement to tax credits is protected from creditors in the event of bankruptcy.

• Any attempt to assign, transfer, or place a charge on a tax credit is automatically void and has no legal effect.
• Any agreement to assign or charge a tax credit in the future is equally void.
• If a person entitled to a tax credit becomes bankrupt, their entitlement does not pass to a trustee in bankruptcy or any other representative acting for their creditors.
• In Scotland, equivalent provisions apply using Scottish legal terminology, covering assignation of tax credits and sequestration of a person's estate.