Citation and commencement

1. This Order may be cited as the Tax Credits (Exercise of Functions) Order 2014 and comes into force on 1st April 2015.

Interpretation

2. —(1) In this Order—

“the 2002 Act” means the Tax Credits Act 2002( 2 );

“the Administration Act” means the Social Security Administration Act 1992( 3 );

“the 2013 Regulations” means the Social Security (Overpayments and Recovery) Regulations 2013( 4 );

“notice” means a notice given under section 29 of the 2002 Act( 5 ) (recovery of overpayments of tax credits);

“penalty” means a penalty imposed under section 31 (incorrect statements etc. ) or 32 (failure to comply with requirements) of the 2002 Act.

(2) Any interest carried under section 37 of the 2002 Act on an amount specified in a notice or on a penalty is to be regarded for the purpose of this Order as if it were specified in the notice or formed part of the penalty respectively.

Functions exercisable by the Secretary of State

3. —(1) The functions of the Commissioners under section 2 of the 2002 Act specified in paragraph (2) are to be exercisable concurrently with the Secretary of State.

(2) The functions are those that relate to—

(a) the recovery from a person to whom a notice has been given of the amount specified in a notice;

(b) the recovery from a person on whom a penalty has been imposed of the amount of the penalty.

Application of the Administration Act

4. —(1) Subject to paragraph (2), the amount specified in a notice or, as the case may be, the amount of a penalty is, for the purposes of the Administration Act, to be treated as if it were an amount recoverable under section 71ZB of that Act( 6 ).

(2) Section 71ZB of the Administration Act has effect in relation to the amount specified in a notice or, as the case may be, the amount of a penalty, as if subsection (3) were omitted.

Application of the 2013 Regulations

5. —(1) The amount specified in a notice is, for the purposes of the 2013 Regulations, to be treated as if it were an overpayment as defined in regulation 2 of those Regulations.

(2) The amount of a penalty is, for the purposes of the 2013 Regulations, to be treated as if it were an amount recoverable under a provision of the Administration Act specified in regulation 3(2) of those Regulations.

Amendment of the 2013 Regulations

6. In the definition of “overpayment” in regulation 2 of the 2013 Regulations (interpretation) omit paragraph (b).