Explanatory note

These Regulations are made by the Treasury under sections 7 and 13 of the Tax Credits Act 2002 (c. 21) and effect changes to certain thresholds and taper rates of tax credits.

Regulation 2 amends the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008) so that the income threshold for those entitled to working tax credit and child tax credit is decreased, the income rise disregard is decreased and the taper rate at which tax credits are withdrawn is increased.

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.