Explanatory note

These Regulations amend tax credits legislation.

Regulation 2 amends regulation 8 of the Child Tax Credit Regulations 2002 (S.I. 2002/2007) to designate, as disabled or severely disabled, for the purposes of child tax credit, persons who receive a reduced or nil rate of Scottish disability assistance because they are an in-patient in a hospital or similar institution.

Regulation 3 amends regulation 19 and Table 6 of the Tax Credits (Definition and Calculation of Income) Regulations 2002 (S.I. 2002/2006), to disregard certain payments from the calculation of income for tax credits purposes.

Regulation 4 amends and makes consequential amendments to regulation 17 of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) so that persons who are in receipt of certain Scottish disability payments (or who would be but for being an in-patient at a hospital or similar institution) are entitled to the severe disability element of working tax credits.

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