I'm currently working with a Turkish couple who are seeking advice on Tax Credits. I've estabilshed that they can claim WTC but I'm still not sure of their right to claim CTC (they have leave to remain subject to a public funds restriction). Page 1458 of the CPAG WB&TC handbook would suggest that they do have a right to apply as they are exempt from the PSIC condition. Can anyone confirm? Thanks, K.

It's Case 5 of Reg3(1) of the Tax Credit (Immigration) Regs which provides that nationals of countries with which the EU has agreements for the equal treatment of workers are exempt from the PSIC rules provided they are lawfully working. EU has agreements with Turkey, Algeria, Morocco and Tunisia (I think!).

So your clients are entitled to claim CTC.

BUT the fact that they are entitled to claim does not mean that the public funds restriction no longer applies to their immigration status. Both types of TC are public funds. A claim could mess up the immigration status and they need advice from an immigration specialist before they do anything.

see also Statement of Changes HC 346 (reported in rightsnet news on 3 march 2005)

http://www.ind.homeoffice.gov.uk/ind/en/home/laws___policy/immigration_rules/statement_of_changes13.html

'A person shall not be regarded as having recourse to public funds if he is a person who is not excluded from specified benefits under section 115 of the Immigration and Asylum Act 1999 by virtue of regulations made ... section 42 of the Tax Credits Act 2002.'