| STATUTORY INSTRUMENTS |
| The Tax Credits Up-rating Regulations 2008 |
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Made
Coming into force
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26th March 2008
6th April 2008
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As a result of carrying out in the tax year 2007–08 a review of the amounts specified in section 41(2) of the Tax Credits Act 2002(1) (“the Act”) and in accordance with section 41(1) of the Act, the Treasury have determined that Regulations should be made prescribing increases in some of those sums. |
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A draft of these Regulations was laid before Parliament in accordance with section 66(1) and (2)(a) of the Act and approved by resolution of each House of Parliament. |
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Accordingly, the Treasury make the following Regulations in the exercise of the powers conferred upon them by sections 7(1)(a), 9, 11, 13 and 65(1) of the Act. |
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(1) |
These Regulations may be cited as the Tax Credits Up-rating Regulations 2008 and shall come into force on 6th April 2008. |
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(2) |
In these Regulations— |
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“the Child Tax Credit Regulations” means the Child Tax Credit Regulations 2002(2); |
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“the Entitlement Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002(3); |
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“the Income Thresholds Regulations” means the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002(4). |
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(3) |
These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2008 and subsequent tax years. |
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(1) |
The Child Tax Credit Regulations are amended as follows. |
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(2) |
In regulation 7(4)(individual element)— |
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(a) |
in sub–paragraph (a) for “£4,285” substitute “£4,625”; |
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(b) |
in sub–paragraph (b) for “£5,265” substitute “£5,645”; |
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(c) |
in sub–paragraph (c) for “£1,845” substitute “£2,085”; |
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(d) |
in sub–paragraph (d) for “£4,285” substitute “£4,625”; |
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(e) |
in sub–paragraph (e) for “£5,265” substitute “£5,645”; and |
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(f) |
in sub–paragraph (f) for “£1,845” substitute “£2,085”. |
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(1) |
The Income Thresholds Regulations are amended as follows. |
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(2) |
In regulation 3(2) (first income threshold for those entitled to working tax credit) for “£5,220” substitute “£6,420”. |
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(3) |
In regulation 3(3) (first income threshold for those entitled to child tax credit) for “£14,495” substitute “£15,575”. |
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(4) |
In regulation 7(3) (determination of working tax credit) — |
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(a) |
in step 4 for “£5,220” substitute “£6,420”. |
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(b) |
in step 5 for “37%” substitute “39%”. |
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(5) |
In regulation 8(3) (determination of child tax credit)— |
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(a) |
in step 4 for “£14,495” substitute “£15,575”. |
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(b) |
in step 5 for “37%” substitute “39%”. |
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26th March 2008 |
Dave Watts
Frank Roy
Two of the Lords Commissioners of Her Majesty’s
Treasury
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| SCHEDULE |
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| Table substituted in Schedule 2 to the Entitlement Regulations |
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Relevant element of working tax credit |
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Maximum annual rate |
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£1,800 |
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£2,405 |
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£735 |
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£1,770 |
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£1,770 |
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| 6. |
Severe disability element |
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£1,020 |
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(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; and |
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£1,235 |
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(b) |
in the case of a person who normally undertakes qualifying remunerative work for at least 30 hours per week |
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£1,840 |
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