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HMRC internal manual

Tax Credits Manual

How to use Geographic Step Closure (GSC) Override function

To use this function you will need the correct user roles.


To support the expansion of Universal Credit (UC), The Department of Work and Pensions (DWP) or The Department for Communities (DfC) in Northern Ireland, are undertaking a phased rollout approach using postcodes. This means that new claims for Tax Credit will no longer be accepted in certain parts of the country.

As part of this Geographic Step Closure (GSC) all new Tax Credit claims will be checked to determine whether the customer(s) is/are living in a postcode area which is closed off to new claims. Once identified, these claims will be rejected and HMRC will signpost the customer(s) towards DWP or DfC to claim UC. The exception to this is if the customer (or in the case of a joint claim, one of the customers) is recognised as being of Pension Credit Qualifying Age (PCQA). Business rules will identify these customers and their claim will be accepted.

Note: From 6 April 2017, an additional exception has been introduced to allow any customer with more than 2 children to claim tax credits despite living in a closed postcode area.  

Note: To arrive at this point you will be manually capturing a new claim. The override function will be used when performing repair or corrective action

Step 1

On the ‘Summary Information’ screen

  • update application notes with TG04 or TG05 from TCM0174020. For how to do this, use TCM1000001.
  • complete any relevant repair action
  • select ‘OK’
  • go to Step 2.

Step 2

GSC business rules will recognise that the claim you are attempting to capture is for a postcode closed to new Tax Credit claims and exceptions to business rules do not apply.

You will be presented with a warning message stating that ‘The Information captured is for a closed postcode. Application will be rejected unless overridden’. Within this message will be a GSC Override checkbox. Unless the override is applied the claim will be rejected.

Note: where the operator does not have the relevant business access the GSC Override checkbox will not be enabled

If you wish to override GSC business rules

  • place a tick in the ‘GSC Override’ box
  • select ‘Process’

If you do not wish to override GSC business rules

  • select ‘Process’
  • the claim will be rejected
  • a TC601U will be issued