Section MD 16 — Income Tax Act 2007: Calculation of parental tax credit abatement

MD 16 Calculation of parental tax credit abatement When this section applies (1) This section applies when— (a) a person is entitled under section MD 11 to a parental tax credit for a parental entitlement period; and (b) they choose to have the credit paid in a lump sum; and (c) the birth occurs within 56 days of the end of the tax year. Amount of abatement (2) Despite section MD 2 , the amount of the person's parental tax credit abatement for the parental entitlement period is calculated using the formula— full-year abatement × 56 − amount used. 365 Definition of items in formula (3) In the formula,— (a) full-year abatement has the same meaning as the item full-year abatement in section MD 13(3)(a) : (b) amount used means an amount of family credit abatement under section MD 13 for an entitlement period that ends on the last day of the tax year to the extent to which the abatement would be applied under section MD 2(2)(c)(i) and (ii) in calculating a net contribution. Defined in this Act: amount , entitlement period , family credit abatement , parental entitlement period , parental tax credit , pay , tax year Compare: 2004 No 35 s KD 2B Section MD 16: added, on 1 April 2008, by section 478 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).