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United Kingdom Statutory Instruments |
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You are here: BAILII >> Databases >> United Kingdom Statutory Instruments >> The Tax Credits Up-rating Regulations 2006 No. 963 URL: http://www.bailii.org/uk/legis/num_reg/2006/20060963.html |
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| Made | 29th March 2006 | ||
| Coming into force | 6th April 2006 |
(3) These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2006 and subsequent tax years.
Amendment of Child Tax Credit Regulations
2.
—(1) The Child Tax Credit Regulations are amended as follows.
(2) In regulation 7(4)[5] (individual element)—
Amendment of the Entitlement Regulations
3.
—(1) In regulation 20(2) of the Entitlement Regulations (maximum rate of the child care element of a working tax credit), for "70 per cent." substitute "80 per cent.".
(2) For the Table in Schedule 2[6] to the Entitlement Regulations substitute the Table set out in the Schedule to these Regulations.
Amendment of the Income Thresholds Regulations
4.
—(1) In regulation 3(3) of the Income Thresholds Regulations (first income threshold for those entitled to child tax credit) for "£13,910" substitute "£14,155".
(2) In regulation 5 (amounts prescribed for the purposes of section 7(3)(a) and (b) of the Act) for "£2,500" substitute "£25,000".
(3) In regulation 8(3) (determination of child tax credit) for "£13,910" (threshold amount shown at step 4) substitute "£14,155".
Gillian Merron
Joan Ryan
Two of the Lords Commissioners of Her Majesty's Treasury
29th March 2006
| Relevant element of working tax credit | Maximum annual rate |
|
1.
Basic element |
£1,665 |
|
2.
Disability element |
£2,225 |
|
3.
30 hour element |
£680 |
|
4.
Second adult element |
£1,640 |
|
5.
Lone parent element |
£1,640 |
|
6.
Severe disability element |
£945 |
|
7.
50 plus element— |
|
|
(a) in the case of a person who normally undertakes qualifying remunerative work for at least 16 hours, but less than 30 hours, per week |
£1,140 |
|
(b) in the case of a person who normally undertakes qualifying remunerative work for at least 30 hours per week |
£1,705 |
The Treasury's report of the review in respect of the tax year 2005-06 was published and laid before Parliament on 13th February 2006.
In consequence of the review the Treasury have made these Regulations, prescribing increases in certain of the sums required to be reviewed under section 41.
Regulation 1 provides for the citation, commencement and effect of these Regulations, and defines some terms used in them.
Regulation 2 amends regulation 7(4) of the Child Tax Credit Regulations 2002 (S.I. 2002/2007), increasing the maximum rate of the elements of a child tax credit.
Regulation 3 increases the maximum rate of the child care element of working tax credit. The Schedule amends Schedule 2 to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) by substituting a new Table prescribing the maximum rates for the elements of working tax credit other than the child care element.
Regulation 4 increases the first income thresholds for those entitled to child tax credit in regulation 3(3) of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008) and the threshold amount shown at step 4 in regulation 8(3) of the above mentioned regulations. It also increases the amount prescribed for the purposes of section 7(3)(a) and (b) of the Tax Credits Act 2002 from £2,500 to £25,000.
These Regulations impose no new costs on business.
[5] This regulation was last amended by S.I. 2005/681.back
[6] By virtue of regulation 3 of S.I. 2005/681 this table substituted the table in Schedule 2.back
