OpenLegislation

The Tax Credits Up-rating Regulations 2004

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2004, ISBN 0110487338

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under section 66(1) and (2)(a) of the Tax Credits Act 2002, for approval by resolution of each House of Parliament.

TAX CREDITS

Made March 2004

Coming into force 6th April 2004

Whereas the Treasury have reviewed the amounts specified in section 41(2) of the Tax Credits Act 2002f1 in order to determine whether they have retained their value in relation to general level of prices in the United Kingdom;

And whereas a draft of these Regulations, which prescribe monetary amounts that are required to be reviewed under that section, was laid before, and approved by resolution of, each House of Parliament, pursuant to section 66(1) and (2)(a) of that Act;

Now therefore the Treasury, in exercise of the powers conferred upon them by sections 7(1)(a), 9, 11, 13(2) and 65(1) of that Act, make the following Regulations:

Annotations to the whole text

Footnotes

f1

2002 c. 21

Contents

  1. 1Citation, commencement, effect and interpretation
  2. 2Amendment of the Child Tax Credit Regulations
  3. 3Amendment of the Entitlement Regulations
  4. 4Amendment of the Income Thresholds Regulations
  5. Signature
  6. Schedule Table substituted in Schedule 2 to the Entitlement Regulations
  7. Explanatory note

1Citation, commencement, effect and interpretation

(1)

These Regulations may be cited as the Tax Credits Up-rating Regulations 2004 and shall come into force on 6th April 2004.

(2)

In these Regulations—

  • “the Child Tax Credit Regulations” means the Child Tax Credit Regulations 2002f1;

  • “the Entitlement Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002f2;

  • “the Income Thresholds Regulations” means the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002f3.

(3)

These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2004 and subsequent tax years.

2Amendment of the Child Tax Credit Regulations

In regulation 7(4) of the Child Tax Credit Regulations (individual element of the child tax credit)—

(a)

in sub-paragraph (a) for “£3,600” substitute “£3,840”;

(b)

in sub-paragraph (b) for “£4,465” substitute “£4,730”;

(c)

in sub-paragraph (c) for “£1,445” substitute “£1,625”;

(d)

in sub-paragraph (d) for “£3,600” substitute “£3,840”;

(e)

in sub-paragraph (e) for “£4,465” substitute “£4,730”; and

(f)

in sub-paragraph (f) for “£1,445” substitute “£1,625”.

3Amendment of the Entitlement Regulations

For the Table in Schedule 2 to the Entitlement Regulations substitute the Table set out in the Schedule to these Regulations.

4Amendment of the Income Thresholds Regulations

In regulation 3(3) of the Income Thresholds Regulations (first income threshold for those entitled to child tax credit) for “£13,230” substitute “£13,480”.

Signature

Two of the Lords Commissioners of Her Majesty’s Treasury

March 2004

Table substituted in Schedule 2 to the Entitlement Regulations

Relevant element of working tax creditMaximum annual rate
1

Basic element

£1,570
2

Disability element

£2,100
3

30 hour element

£640
4

Second adult element

£1,545
5

Lone parent element

£1,545
6

Severe disability element

£890
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

£1,075
(b)

in the case of a person who normally undertakes qualifying remunerative work for at least 30 hours per week

£1,610

Explanatory note

(This note is not part of the Regulations)

Section 41 of the Tax Credits Act 2002 (c. 21) requires the Treasury, in each tax year to—

(a)

review the amounts referred to in subsection (2) of that section,

(b)

prepare a report of each review; including a statement of what each of the amounts would be if it had fully retained its value; and

(c)

publish the report and lay a copy of it before each House of Parliament.

The Treasury’s report of the review in respect of the tax year 2003-04 was published and laid before Parliament on 23rd February 2004.

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 individual element of a child tax credit.

Regulation 3 and the Schedule amend 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 threshold 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).

These Regulations impose no new costs on business.