E2.232 Tax credits—artificial reduction of income
Claimants depriving themselves of income in order to secure entitlement
If a claimant has deprived themselves of income for the purpose of securing entitlement to, or increasing the amount of, a tax credit, they are treated as having that income1.
HMRC guidance states:
'Deprivation occurs if a claimant gives up, or transfers to another person, an income which was received, or due to be received, to gain or increase entitlement to tax credits. For example, a claimant may, by a deed of gift, transfer entitlement to an occupational pension to someone else … The claimant may
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