Amendment of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 20024
1
The Tax Credits (Income Thresholds and Determinations of Rates) Regulations 20026 are amended as follows.
2
In the heading before regulation 5 (income test: relevant income) for “Amounts prescribed for the purposes of section 7(3)(a) and (b) of the Act” substitute “Amounts prescribed for the purposes of section 7(3) of the Act”.
3
For regulation 5 substitute—
5
The amount prescribed—
a
for the purposes of section 7(3)(a) and (b) of the Act is £10,000; and
b
for the purposes of section 7(3)(c) and (d) of the Act is £2,500.
4
In regulation 7(3) (determination of rate of working tax credit) in Step 5 for “39%” substitute “41%”7.
5
In regulation 8(3) (determination of rate of child tax credit)—
a
in each of the headings before Steps 5, 6 and 7, and in Steps 6 and 7, omit “(other than the family element)”;
b
omit Steps 8, 9 and 10;
c
in consequence of the amendments made by paragraph (b), Step 11 is renumbered as “Step 8” and for the words from “Add together” to “This is the rate for the relevant period.” substitute—
The rate for the relevant period is the total of the amounts found under Step 2 for the elements of the tax credit after any reduction in accordance with Step 6 or Step 7.