TCTM02820 - Entitlement: Tax credits and European Law: Priority rules in the event of overlapping entitlement to family benefits - Article 68(1) and Decision F1

Article 68 (1) of Regulation (EC) 883/2004, Decision No F1 of the Administrative Commission for the Coordination of Social Security Systems

Family benefits paid by more than one Member State on the same basis

Where family benefits are payable during the same period and for the same family member by more than one MS on the same basis, the competent State will be determined by reference to the place of residence of the children.

Family benefits paid by more than one Member State on different basis

Where family benefits are payable during the same period and for the same family member by more than one Member State (MS) on different bases, the competent MS for the payment of family benefits shall be decided in the following order:

  1. by rights available on the basis of an activity as a employed or self employed person in a MS;

  2. by rights available on the basis of receipt of a pension in a MS;

  3. by rights available on the basis of residence in a MS.

Activity as an employed or self employed person

For the purpose of applying Article 68, family benefits continue to be regarded as being ‘available on the basis of activity as an employed or self employed person’ where the activity is temporarily suspended due to:

  • sickness,
  • maternity,
  • accident at work,
  • occupational disease or unemployment,
  • paid leave, strike or lock out -

provided, that wages or benefits (excluding pensions) are payable in respect of these contingences. For example - a woman on paid maternity leave would continue to be regarded as a worker for family benefit purposes and would also be eligible to claim Child Benefit and Child Tax Credit in respect of her children resident in another MS.