Tax Credits Act 2002 section 5

Period of awards

Section 5 establishes the time period that a tax credit award covers, depending on when the claim is made relative to the tax year.

• A claim made before the tax year begins results in an award covering the whole tax year.
• A claim made during the tax year results in an award running from the date of the claim to the end of that tax year.
• In either case, HMRC has the power to terminate an award early under section 16.
• The timing of the claim therefore directly affects how much of the tax year the award covers.