| Made |
11th April 2019 |
| Laid before Parliament |
16th April 2019 |
| Coming into force |
7th May 2019 |
The Treasury, in exercise of the powers conferred by sections
146(3) and 175(1) and (3) of the Social Security Contributions and
Benefits Act 1992, sections 142(3) and 171(1) and (3) of the Social
Security Contributions and Benefits (Northern Ireland) Act 1992 and
now exercisable by them, and sections 3(7) and 65(1) and (7) of the
Tax Credits Act 2002, make the following Regulations:
Citation and commencement
1. These Regulations may be cited as the Child Benefit and
Child Tax Credit (Amendment) (EU Exit) Regulations 2019 and come into
force on 7th May 2019.
Amendment of the Child Benefit (General) Regulations 2006
2.—(1) The Child Benefit (General) Regulations 2006
are amended as follows.
(2) In regulation 23(4) (circumstances in which person treated as
not being in Great Britain)—
(a) omit “or” at the end of sub-paragraph (a),
and
(b) after sub-paragraph (b), but before the full stop,
insert—
“; or
(c) would fall within sub-paragraph (a) or (b) but for the
fact that that person has limited leave to enter, or remain in,
the United Kingdom under the Immigration Act 1971 which has
been granted by virtue of Appendix EU to the immigration rules
”.
(3) In regulation 27(3) (circumstances in which person treated as
not being in Northern Ireland)—
(a) omit “or” at the end of sub-paragraph (a),
and
(b) after sub-paragraph (b), but before the full stop,
insert—
“; or
(c) would fall within sub-paragraph (a) or (b) but for the
fact that that person has limited leave to enter, or remain in,
the United Kingdom under the Immigration Act 1971 which has
been granted by virtue of Appendix EU to the immigration rules
”.
Amendment of the Tax Credits (Residence) Regulations 2003
3.—(1) The Tax Credits (Residence) Regulations 2003
are amended as follows.
(2) In regulation 3(5) (circumstances in which a person is treated
as not being in the United Kingdom)—
(a) omit “or” at the end of sub-paragraph (b)(i),
and
(b) after paragraph (b)(ii), but before the full stop,
insert—
“; or
(iii) would fall within paragraph (i) or (ii) but for the
fact that that person has limited leave to enter, or remain in,
the United Kingdom under the Immigration Act 1971 which has
been granted by virtue of Appendix EU to the immigration rules
”.
Rebecca Harris
Mike Freer
Two of the Lords Commissioners of Her Majesty’s Treasury
11th April 2019
EXPLANATORY NOTE
(This note is not part of the
Regulations)
These Regulations amend the Child Benefit (General) Regulations
2006 (“the Child Benefit Regulations”) and the Tax
Credits (Residence) Regulations 2003 (“the Residence
Regulations”).
Regulation 2 inserts new paragraphs (4)(c) and (3)(c) into
regulations 23 and 27 of the Child Benefit Regulations respectively.
These provide that a person with limited leave to enter, or remain
in, the United Kingdom under the Immigration Act 1971 which has been
granted by virtue of Appendix EU is treated as not being in Great
Britain or Northern Ireland, respectively, if that person would fall
within paragraph (4)(a) or (b) of regulation 23, or paragraph (3)(a)
or (b) of regulation 27, without such leave.
Regulation 3 inserts new paragraph (5)(b)(iii) into regulation 3
of the Residence Regulations which makes equivalent provision in
relation to those Regulations.
A full impact assessment has not been produced for this instrument
as no impact on the private or voluntary sectors is foreseen.
--------------------------------------------------------------------------------------------------------
EXPLANATORY MEMORANDUM TO THE CHILD BENEFIT AND CHILD TAX CREDIT
(AMENDMENT) (EU EXIT) REGULATIONS 2019
2019 No. 867
1. Introduction
1.1 This explanatory memorandum has been prepared by Her
Majesty’s Revenue and Customs (HMRC) on behalf of Her
Majesty’s Treasury and is laid before Parliament by Command of
Her Majesty.
2. Purpose of the instrument
2.1 This instrument makes amendments to Child Benefit and Child
Tax Credits regulations, to clarify that the existing rules on access
to Child Benefit and Child Tax Credit remain in place for EEA
(European Economic Area) and Swiss nationals and for Zambrano carers
(non-United Kingdom, non-EEA citizen primary carers of a British
citizen child, or adult dependant) who are granted limited leave to
enter or remain under the EU Settlement Scheme (the EUSS). The EUSS
is the new immigration scheme for EEA and Swiss nationals in the UK
(United Kingdom) when the UK leaves the EU (European Union).
3. Matters of special interest to
Parliament
Matters of special interest to the
Joint Committee on Statutory Instruments
3.1 None.
Matters relevant to Standing Orders
Nos. 83P and 83T of the Standing Orders of the House of Commons
relating to Public Business (English Votes for English Laws)
3.2 As the instrument is subject to negative resolution procedure
there are no matters relevant to Standing Orders Nos. 83P and 83T of
the Standing Orders of the House of Commons relating to Public
Business at this stage.
4. Extent and Territorial
Application
4.1 The territorial extent of this instrument is the United
Kingdom.
4.2 The territorial application of this instrument is the United
Kingdom.
5. European Convention on Human
Rights
5.1 As the instrument is subject to negative resolution procedure
and does not amend primary legislation, no statement is required.
6. Legislative Context
6.1 Under existing legislation, individuals who wish to claim
Child Benefit or Child Tax Credit must be:
- present in the UK;
- ordinarily resident in the UK; and
- have a right to reside in the UK.
6.2 EU, EEA and Swiss nationals and their family members have a
right to reside in the UK if they are exercising EU Treaty rights
such as being in the UK as a worker (or self-employed person), or as
a family member of a person exercising Treaty rights.
6.3 Zambrano carers are non-UK, non-EEA citizen primary carers of
a British citizen child, or dependent adult, where the child or
dependant would be forced to leave the EEA if the primary carer were
required to leave the UK.
6.4 Regulation 23 and 27 of the Child Benefit (General)
Regulations 2006 (SI 2006/223), currently provide that an individual
who does not have a right to reside, or who has a right to reside
only as a Zambrano carer, is not treated as being within Great
Britain or Northern Ireland for the purposes of claiming Child
Benefit.
6.5 Similar provisions at regulation 3 of the Tax Credits
(Residence) Regulations 2003 (SI 2003/654), mean that an individual
who does not have a right to reside, or has a right to reside only as
a Zambrano carer, is treated as not being in the United Kingdom for
the purposes of claiming Child Tax Credit.
6.6 Regulations 3 and 4 of this instrument amend regulations 23
and 27 of the Child Benefit (General) Regulations 2006. The
amendments clarify that a person who has limited leave to enter or
remain in the United Kingdom under the EUSS must also have a right to
reside in the United Kingdom in order to qualify for Child Benefit.
The amendments also clarify that a person who has limited leave to
enter or remain under the EUSS (also referred to as pre-settled
status) on the basis they have a right to reside as a Zambrano carer,
continues to not qualify for Child Benefit.
6.7 Regulation 6 amends the Tax Credits (Residence) Regulations
2003. The amendment clarifies that a person who has limited leave to
enter or remain in the United Kingdom under the EUSS must also have a
right to reside in the United Kingdom in order to qualify for Child
Tax Credit. The amendment also clarifies that a person who has
limited leave to enter or remain under the EUSS on the basis they
have a right to reside as a Zambrano carer, continues to not qualify
for Child Tax Credit.
7. Policy background
What is being done and why?
7.1 Child Benefit is a tax-free, non-means-tested benefit,
administered by HMRC. It is paid to people who are responsible for,
or treated as responsible for, children or qualifying young persons.
There are two rates of payment:
- higher rate payable for the eldest or only child or qualifying
young person in the family unit,
- basic rate payable for all other children or qualifying young
persons in the family unit.
7.2 Child Benefit is payable to only one person for a particular
child or qualifying young person in any one week. The child or
qualifying young person must be present, or treated as being present
in Great Britain or Northern Ireland, and the claimant both present
and ordinarily resident in Great Britain or Northern Ireland.
7.3 Tax credits are a means-tested form of support which provide
help to millions of families with a wide variety of differing
circumstances. Child Tax Credit supports families with children.
Working Tax Credit provides support for working people on a low
income. It tops up the earnings of workers on low to moderate
incomes, targeting support to those in work at the lowest income
levels.
7.4 The EUSS requires that EEA and Swiss nationals, resident in
the UK before a specified date, apply to the Home Office in order to
obtain a UK immigration status which protects their rights in the UK.
Zambrano carers will also need to apply by the same date in order to
confirm their immigration status and rights. Those with less than 5
years continuous residence in the UK will be granted limited leave to
enter or remain. Those with 5 or more years continuous residence will
be granted indefinite leave to enter or remain (also referred to as
settled status). More information on the EUSS can be found on GOV.UK
at:
www.gov.uk/government/collections/eu-settlement-scheme-applicant-information
7.5 This instrument makes amendments to Child Benefit and Tax
Credit regulations to clarify that the current rules on access to
benefits for EEA nationals, Swiss nationals and Zambrano carers
continue to apply whilst they hold limited leave to enter or remain
that has been granted under the EUSS.
8. European Union (Withdrawal)
Act/Withdrawal of the United Kingdom from the European Union
8.1 This instrument is not being made under the European Union
(Withdrawal) Act 2018, but relates to the withdrawal of the United
Kingdom from the European Union because it relates to the EU
Settlement Scheme.
9. Consolidation
9.1 There are no plans to consolidate any of the Regulations which
are amended by these Regulations.
10. Consultation outcome
10.1 A consultation has not been carried out as these regulations
clarify that the existing rules on access to benefits for EEA, Swiss
nationals and Zambrano carers continue to apply to those holding
limited leave to enter or remain under the EUSS.
10.2 HMRC has not consulted with the Social Security Advisory
Committee, due to the short timescale for making these clarifying
amendments. However the Committee has been notified of the intention
not to consult due to urgency, and will be provided with an overview
of the legislative changes.
11. Guidance
11.1 As these changes will maintain the current rules for access
to benefits changes to online guidance, leaflets, forms and manuals
will not be required. More information on Child Benefit can be found
at: www.gov.uk/child-benefit and
on Child Tax Credit at: www.gov.uk/child-tax-credit
12. Impact
12.1 There is no, or no significant, impact on business, charities
or voluntary bodies.
12.2 There is no, or no significant, impact on the public
sector.
12.3 An Impact Assessment has not been prepared for this
instrument because these regulations maintain the current level of
access to benefits.
13. Regulating small business
13.1 The legislation does not apply to activities that are
undertaken by small businesses.
14. Monitoring & review
14.1 There are no plans to monitor or review this instrument as it
clarifies that the current rules on access to benefits will continue
to apply to those holding limited leave to enter or remain under the
EUSS.
14.2 These Regulations do not include a statutory review clause as
they have no regulatory effect on business activity.
15. Contact
15.1 Lynn Meikle at HM Revenue & Customs, Telephone: 03000
586644 or email:
lynn.meikle@hmrc.gov.uk, can be contacted with any queries
regarding the instrument.
15.2 Angela Walker, Deputy Director for Individuals Policy
Directorate, at HM Revenue & Customs can confirm that this
Explanatory Memorandum meets the required standard.
15.3 The Rt Hon Elizabeth Truss MP, the Chief Secretary to the
Treasury, can confirm that this Explanatory Memorandum meets the
required standard.