The Tax Credits Schemes (Miscellaneous Amendments No. 2) Regulations 2001

Determination of appropriate maximum working families' tax credit

3.—(1) Amend regulation 46 as follows.

(2) For paragraph (1)(1) substitute—

“(1) Subject to paragraphs (2) to (7)(2) of this regulation, the appropriate maximum working families' tax credit shall be the aggregate of the following credits—

(a) in respect of a claimant or, if he is a member of a married or unmarried couple, in respect of the couple, the credit specified in column (2) of the table in Schedule 4 at paragraph 1;

(b) in respect of a lone parent who works, or in respect of a claimant who is a member of a married or unmarried couple either or both of whom work, for not less than 30 hours per week, the credit specified in column (2) of the table in Schedule 4 at paragraph 2;

(c) in a case to which regulation 46(A)(3) applies, a credit (“childcare tax credit”) equal to 70 per cent. of the amount of any relevant childcare charges as mentioned and calculated on a weekly basis in regulation 46A, subject to a maximum in respect of the claimant’s family of whichever the amounts specified in paragraph (1A)(4) applies in the claimant’s case;

(d) in respect of a lone parent to whom paragraph (1D) applies, or, where the claimant is a member of a married or unmarried couple to either or both of whom paragraph (1D) applies, in respect of the couple, the credit specified in column (2) of the table in Schedule 4 at paragraph 3;

(e) in respect of any child or young person for whom the claimant or his partner is treated as responsible by virtue of regulation 7, the credit specified in column (2) of the table in Schedule 4 at paragraph 4 or 5 as appropriate in respect of the period specified in that paragraph;

(f) in respect of any child or young person for whom the claimant or his partner is treated as responsible by virtue of regulation 7 and who is a member of the claimant’s household—

(i) where paragraph (1B)(5) applies, and paragraph (1D) does not apply, to the child or young person, the credit specified in column (2) of the table in Schedule 4 at paragraph 6(a);

(ii) where paragraph (1D) applies to the child or young person, the credit specified in column (2) of that table at paragraph 6(b).”.

(3) In paragraph (1A) for “(1)(ab)” substitute “(1)(c)”.

(4) In paragraph (1B) omit “for whom the claimant or his partner is responsible and who is a member of the claimant’s household, and”.

(5) After paragraph (1C) insert—

“(1D) This paragraph applies to a person in respect of whom the care component of disability living allowance is, or would but for either a suspension of benefit in accordance with regulations under section 113(2) of the Contributions and Benefits Act or an abatement as a consequence of hospitalisation, be payable at the highest rate prescribed under section 72(3) of that Act.”.

(6) In paragraph (2) for “of Schedule 4 against paragraph 3 in column (1)” substitute “of the table in Schedule 4 at paragraph 5”.

(7) In paragraph (5) after “the amount” insert “or amounts”.

(1)

Amended by regulation 11(a) of S.I. 1988/660, regulation 7 of S.I. 1995/1339, regulation 5(2) of S.I. 1996/2545, regulation 7(2) of, and paragraph (1)(xiv) of Schedule 1 to, S.I. 1999/2487 and regulation 8(a) of S.I. 2000/1807.

(2)

Paragraph (2) was amended by regulation 5(3) of S.I. 1996/2545 and paragraph (4) by regulation 33 of S.I. 1993/2119. Paragraph (7) was inserted by regulation 11(b) of S.I. 1988/660 and amended by regulation 14 of S.I. 1995/516 and regulation 5(4) of S.I. 1996/2545. See also Article 3(a) and (b) of S.I. 2000/931 (the latest Up-rating Order) which prescribes sums contained in paragraphs (4), (5) and (6).

(3)

Regulation 46A was formerly regulation 13A and was renumbered by regulation 6 of, and amended by regulation 8 of, and paragraph (1) of Schedule 1 to, S.I. 1999/2487. Regulation 13A was inserted by regulation 4(4) of S.I. 1994/1924 and amended by regulation 12 of S.I. 1995/516, paragraph 9 of the Schedule to S.I. 1996/1008, regulation 4 of S.I. 1996/2545, regulation 2(4) of 1997/2793 and regulation 4 of S.I. 1999/714.

(4)

Inserted by regulation 7(3) of S.I. 1999/2487.

(5)

Inserted, together with paragraph (1C), by regulation 8(b) of S.I. 2000/1807.