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HMRC internal manual

Tax Credits Technical Manual

Discovery decisions: section 20 discovery decisions

The Tax Credits Act 2002, Section 20 decisions on discovery

(see TCTM12000)

A discovery decision can only be made where a conclusive decision relating to the entitlement to tax credits is incorrect. The meaning of “conclusive decision” is defined in the legislation see S20 (6):

S20 (6) “Conclusive decision”, in relation to the entitlement of a person, or joint entitlement of persons, to a tax credit for a tax year, means-

(a) a decision in relation to it under section 18(1), (5), (6) or (9) or 19(3) or a previous decision under this section, or

(b) a decision under regulations under section 21 relating to a decision within paragraph (a), including a decision made on an appeal against such a decision.

S20 (7) Subject to any subsequent decision under this section and to regulations under section 21 (and to any appeal), a decision under subsection (1) or (4) in relation to a person or persons and a tax credit for a tax year is conclusive as to the entitlement of the person, or the joint entitlement of the persons, to the tax credit for the tax year and the amount of the tax credit to which he was entitled, or they were jointly entitled, for the tax year.