Skip to main content

Child Tax Credit: EU Law

Volume 487: debated on Monday 2 February 2009

To ask the Chancellor of the Exchequer on what basis it was determined that child tax credit is not a family allowance for the purpose of Article 77 of EU Regulations 1408/71. (252781)

The purpose of the child tax credit is to support families in the UK. It is only given to families outside the UK in limited circumstances and to meet our obligations under EC Regulation 1408/71.

The term “family allowances” is defined in the regulation as benefits payable exclusively by reference to the number and, where appropriate, age of the children in the family. However, the child tax credit is based on the number of children and on annual household income. On that basis, HM Revenue and Customs has received legal advice that the child tax credit is not a “family allowance” and is therefore not payable under article 77 of the regulation.