TCTM11003 | Transition to Universal Credit: Exclusion of entitlement to tax credits

The Universal Credit (Transitional Provisions) Regulations 2014, Regulation 5

A person is not entitled to a tax credit in respect of any period when the claimant is entitled to universal credit. Please also see TCTM11002 {#}.

This is the case apart from prescribed circumstances in paragraph 2(b)(iii) of these regulations. This part of the regulations allows a new claimant partner on universal credit who was previously part of a tax credits award to be included in an assessment period for universal credit for a period in which they were also in a tax credits award.

Example: Mrs. Jones has a joint tax credits award with Mr. Jones. On 15/11/2020 Mrs. Jones becomes part of a couple with Mr. Smith who is a universal credit claimant. Mr. Smith reports this change of circumstances to DWP and Mrs. Jones is added to his universal credit award. Mr. Smith has a universal credit assessment period which runs from 01/11/2020 to 30/11/2020. Mrs. Jones is treated as being present from the beginning of the assessment period for universal credit. Mr. and Mrs. Jones’ tax credit award in a joint capacity ends on 14/11/2020 which is the day before Mrs. Jones joined Mr. Smith’s household. Effectively Mrs. Jones is entitled to tax credits and universal credit in different households for the same period. This maintains Mr. and Mrs. Jones’ entitlement as a tax credits couple for the period 01/11/20 to 14/11/20 as Mr. Jones would be unable to claim singly during that period.