EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations are made by the Treasury under section 7 of the Tax Credits Act 2002 (c. 21).
Regulation 2 amends the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008) so as to decrease from £5,000 to £2,500 the amount of income that is disregarded for the purposes of determining entitlement to tax credits for the current year where the income for that year exceeds the income from the previous year (“the income rise disregard”).
A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.