Section Sch50-“ 80KW — Income Tax Act 2007: Effect of extra instalment on entitlement to tax credit

“ 80KW Effect of extra instalment on entitlement to tax credit “ (1) This section applies to a person who— “ (a) is entitled to a family assistance credit or family tax credit for the whole or part of a tax year; and “ (b) receives in the tax year— “ (i) a payment under section 80KI of an instalment of the credit for each period of a week or a fortnight in the tax year; or “ (ii) payments under section 80KN of instalments of the credit in the tax year and no payment under section 80KI in the tax year; and “ (c) as a consequence of the year not being divided into an exact number of fortnights or weeks,— “ (i) receives in the tax year 27 instalments corresponding to a period of a fortnight; or “ (ii) may have received in the tax year 53 instalments corresponding to a period of a week. “ (2) Subsection (3) applies— “ (a) for the purposes of section MF 6 of the Income Tax Act 2007; and “ (b) when a person has received payments under section 80KI for the whole of a tax year. “ (3) The person is entitled to a tax credit for the tax year of an amount calculated using the formula— tax credit + ( (final instalment − parental tax credit) × 13 ) . 14 “ (4) In the formula in subsection (3),— “ (a) tax credit is the amount of the tax credit for the tax year calculated for the person under— “ (i) section MD 1 of the Income Tax Act 2007, if the person is entitled to a family assistance credit: “ (ii) section ME 1 of that Act, if the person is entitled to the family tax credit: “ (b) final instalment is the amount of the final instalment received by the person in the tax year: “ (c) parental tax credit is the amount of any parental tax credit that is included in the final instalment received by the person in the tax year. “ (5) Subsection (6) applies— “ (a) for the purposes of section MF 6 of the Income Tax Act 2007; and “ (b) when a person has received payments under section 80KN for the whole of a tax year. “ (6) The person is entitled to a tax credit for the tax year equal to an amount calculated using the formula— tax credit + total amount of instalments 53. “ (7) In the formula in subsection (6),— “ (a) tax credit is the amount of the tax credit for the tax year calculated for the person under— “ (i) section MD 1 of the Income Tax Act 2007, if the person is entitled to a family assistance credit: “ (ii) section ME 1 of that Act, if the person is entitled to the family tax credit: “ (b) total amount of instalments is the total amount of the instalments received by the person in the tax year. “ Compare: 2004 No 35 s KD 7A ” .