Commentary on Sections Other Enforcement Powers Section 52: Deduction of recoverable amounts from tax credit awards
229.Section 52 allows amounts that a person owes to HMRC under section 35 or 36 because they received a back-dated award of tax credits as a result of a review or appeal, to be deducted from the tax credit award made to them or their partner (if it is a joint claim).
230.This section could apply, for example, where a person is refused tax credits and appeals against that decision, but successfully applies for this scheme while the appeal proceeds. If their appeal is successful, a debt to HMRC arises because they have to repay the top-up payments that they received during the appeal process. This section allows the repayment to be taken from the back-dated tax credit award made as a result of their appeal.