Exiting The European Union Citation and commencement 1 1 These Regulations may be cited as the Tax Credits and Child Trust Funds (Amendment) (EU Exit) Regulations 2019. 2 These Regulations come into force as follows— a regulation 1 comes into force on the earlier of the following— i exit day ; ii immediately after the coming into force of the Social Security (Ireland) Order 2019) ; b regulations 2 to 9 come into force immediately after the coming into force of the Social Security (Ireland) Order 2019; and c regulations 10 to 13 come into force on exit day. Amendment of the Tax Credits (Claims and Notifications) Regulations 2002 2 The Tax Credits (Claims and Notifications) Regulations 2002 are amended in accordance with regulation 3. 3 In regulation 2 (interpretation), in the definition of “relevant authority” — a in paragraph (b) after “Northern Ireland;” omit “or”; and b in paragraph (c) after “in connection with tax credits;” insert— or, d the Department of Employment Affairs and Social Protection in Ireland, in connection with a claim to a child tax credit made pursuant to Part IV Section 4 of the Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland signed at Dublin on 1st February 2019 . . Amendment of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 4 The Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 are amended in accordance with regulation 5. 5 After regulation 8 (determination of rate of child tax credit), insert— Cases where there is a reciprocal agreement 8A 1 This regulation applies where the United Kingdom is competent to pay family benefits in accordance with Article 39 of the Reciprocal Agreement with Ireland but where Ireland has primary competence for payment of those benefits. 2 Where this regulation applies, child tax credit shall be paid at the rate according to the calculation set out in paragraph (4) of Article 39 of the Reciprocal Agreement with Ireland. 3 Child tax credit shall be paid on a provisional basis where— a Article 39(5) of the Reciprocal Agreement with Ireland applies; b the United Kingdom is Party B in the circumstances set out under Article 40(1)(b) of the Reciprocal Agreement with Ireland; or c the United Kingdom does not agree that it has primary competence for payment of family benefits where the child resides or the children reside in the United Kingdom and Article 63(2) of the Reciprocal Agreement with Ireland applies. 4 In this regulation— a “family benefits” has the meaning as set out in Article 3(1)(x) of the Reciprocal Agreement with Ireland; and b “the Reciprocal Agreement with Ireland” means the Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland signed at Dublin on 1st February 2019. . Amendment of the Tax Credits (Payments by the Commissioners) Regulations 2002 6 The Tax Credits (Payments by the Commissioners) Regulations 2002 are amended in accordance with regulation 7. 7 In regulation 12 (amounts of payments), after paragraph (4) insert— 5 Paragraph (6) applies where the United Kingdom is competent to pay family benefits in accordance with Article 39 of the Reciprocal Agreement with Ireland. 6 Where Article 41(2) of the Reciprocal Agreement with Ireland applies, in the event that primary competence for payment of family benefits changes during a month, child tax credit will be paid for the remainder of that month. 7 For the purposes of paragraph (6), primary competence is to be determined in accordance with Article 39 of the Reciprocal Agreement with Ireland. 8 In paragraphs (5) to (7)— a “family benefits” has the meaning as set out in Article 3(1)(x) of the Reciprocal Agreement with Ireland; and b “the Reciprocal Agreement with Ireland” means the Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland signed at Dublin on 1st February 2019. . Amendment of the Tax Credits (Residence) Regulations 2003 8 The Tax Credits (Residence) Regulations 2003 are amended in accordance with regulation 9. 9 In regulation 3 (circumstances in which a person is treated as not being in the United Kingdom)— a for paragraph (4) , substitute— 4 For the purposes of working tax credit a person (P) shall be treated as being ordinarily resident in the United Kingdom where— a P is exercising rights in the United Kingdom as a worker pursuant to Parliament and Council Regulation (EU) No 492/2011 or P is a person with a right to reside in the United Kingdom pursuant to the Immigration (European Economic Area) Regulations 2016; or b P satisfies the conditions in paragraph (4A). 4A The conditions are that— a P is a national of the United Kingdom or is a citizen of Ireland; b P resides in Ireland; and c P is engaged in qualifying remunerative work in the United Kingdom. 4B For the purposes of paragraph (4A), P is a national of the United Kingdom if— a P is a British citizen; b P is a person who is a British subject by virtue of Part IV of the British Nationality Act 1981 and is therefore exempt from United Kingdom immigration control; or c P is a British Dependent Territories citizen who acquires their citizenship from a connection with Gibraltar. 4C For the purposes of paragraph (4A)— a P is a citizen of Ireland if P is within the meaning of the Irish Nationality and Citizenship Act 1956 ; and b “qualifying remunerative work” has the same meaning as it has in regulation 4 of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 . ; and b after paragraph (7), insert— 7A A person (“P”) who is within Part IV Section 4 of the Reciprocal Agreement with Ireland will be treated as being ordinarily resident in the United Kingdom where P makes a claim for child tax credit if— a P resides in Ireland; and b P is in a relevant situation. 7B Both members of a couple (“A and B”) who are within Part IV Section 4 of the Reciprocal Agreement with Ireland will be treated as being ordinarily resident in the United Kingdom where they make a joint claim for child tax credit tax if— a either — i A or B is resident in Ireland; or ii both A and B are resident in Ireland; and b either— i A or B is in a relevant situation; or ii both A and B are in a relevant situation and it does not matter if A and B are not in the same relevant situation. 7C For the purposes of paragraphs (7A) and (7B), a person is in a “relevant situation” if that person is— a an employed person as defined in Article 1 of the Reciprocal Agreement with Ireland and subject to the legislation of the United Kingdom in accordance with Part II of that Agreement; b a self-employed person as defined in Article 1 of the Reciprocal Agreement with Ireland and subject to the legislation of the United Kingdom in accordance with Part II of that Agreement; c receiving a contributory benefit from the United Kingdom in accordance with Article 9(2) of the Reciprocal Agreement with Ireland; d receiving a state pension from the United Kingdom within the meaning of Article 3(1)(a)(v) of the Reciprocal Agreement with Ireland; or e receiving a survivor’s benefit from the United Kingdom within the meaning of Article 3(1)(a)(vi) of the Reciprocal Agreement with Ireland. 7D For the purposes of paragraphs (7A) to (7C), “the Reciprocal Agreement with Ireland” means the Convention on Social Security between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of Ireland signed at Dublin on 1st February 2019. . Amendment of the Child Trust Funds Regulations 2004 10 The Child Trust Funds Regulations 2004 are amended in accordance with regulations 11 to 13. 11 In regulation 2 (interpretation), in paragraph (1)— a omit the definitions of “ EEA Agreement” and “EEA State” ; b for the definition of “European institution” substitute— “European institution” means— a person who is treated as having permission to carry on a regulated activity in the United Kingdom under Part 4A of the Financial Services and Markets Act 2000 by regulation 8, 11, 28 or 34 of the EEA Passport Rights (Amendment, etc. , and Transitional Provisions) (EU Exit) Regulations 2018 ; or an EEA firm (within the meaning of Article 2(3G) of the Financial Services and Markets Act 2000 (Gibraltar) Order 2001 of the kind mentioned in paragraph 5(a) to (d), (f) and (h) of Schedule 3 to the Financial Services and Markets Act 2000 which is an authorised person for the purposes of that Act as a result of qualifying for authorisation under paragraph 12(1) to (4) and (7) of that Schedule. ; and c for the definition of “recognised UCITS ” substitute— “recognised UCITS” means— a UCITS within the meaning given by section 236A of the Financial Services and Markets Act 2000 ; or an undertaking established in Gibraltar which is a UCITS under the law of Gibraltar implementing Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities . . 12 In regulation 12 (qualifying investments for an account)— a in paragraphs (2)(a) and (5)(d) before “the European Economic area” insert “the United Kingdom, Gibraltar or”; and b in paragraph (2)(d) after “behalf of” insert “the government of the United Kingdom or”. 13 In the Schedule, in paragraph 2 (characteristics of stakeholder account etc.), in sub-paragraph (2)(a)(via) and in the definition of “equities” in sub-paragraph (6) , before “the European Economic Area” insert “the United Kingdom, Gibraltar or”. Rebecca Harris Mike Freer Two of the Commissioners for Her Majesty’s Treasury 28th March 2019 Ruth Stanier Jim Harra Two of the Commissioners for Her Majesty’s Revenue and Customs 28th March 2019