http://www.legislation.gov.uk/ukpga/2002/21/section/7/2003-04-06Tax Credits Act 2002An Act to make provision for tax credits; to amend the law about child benefit and guardian’s allowance; and for connected purposes.2002-07-17texttext/xmlenStatute Law Database2024-05-172003-04-06 Part 1 Tax creditsGeneral Income test71The entitlement of a person or persons of any description to a tax credit is dependent on the relevant income—anot exceeding the amount determined in the manner prescribed for the purposes of this paragraph in relation to the tax credit and a person or persons of that description (referred to in this Part as the income threshold), orbexceeding the income threshold by only so much that a determination in accordance with regulations under section 13(2) provides a rate of the tax credit in his or their case.2Subsection (1) does not apply in relation to the entitlement of a person or persons to a tax credit for so long as the person, or either of the persons, is entitled to any social security benefit prescribed for the purposes of this subsection in relation to the tax credit.3In this Part “the relevant income” means—aif an amount is prescribed for the purposes of this paragraph and the current year income exceeds the previous year income by not more than that amount, the previous year income,bif an amount is prescribed for the purposes of this paragraph and the current year income exceeds the previous year income by more than that amount, the current year income reduced by that amount,cif an amount is prescribed for the purposes of this paragraph and the previous year income exceeds the current year income by not more than that amount, the previous year income,dif an amount is prescribed for the purposes of this paragraph and the previous year income exceeds the current year income by more than that amount, the current year income increased by that amount, andeotherwise, the current year income.4In this Part “the current year income” means—ain relation to persons by whom a joint claim for a tax credit is made, the aggregate income of the persons for the tax year to which the claim relates, andbin relation to a person by whom a single claim for a tax credit is made, the income of the person for that tax year.5In this Part “the previous year income” means—ain relation to persons by whom a joint claim for a tax credit is made, the aggregate income of the persons for the tax year preceding that to which the claim relates, andbin relation to a person by whom a single claim for a tax credit is made, the income of the person for that preceding tax year.6Regulations may provide that, for the purposes of this Part, income of a prescribed description is to be treated as being, or as not being, income for a particular tax year.7In particular, regulations may provide that income of a prescribed description of a person for the tax year immediately before the preceding tax year referred to in subsection (5) is to be treated as being income of that preceding tax year (instead of any actual income of that description of the person for that preceding tax year).8Regulations may for the purposes of this Part make provision—aas to what is, or is not, income, andbas to the calculation of income.9Regulations may provide that, for the purposes of this Part, a person is to be treated—aas having income which he does not in fact have, orbas not having income which he does in fact have.10The Board may estimate the amount of the income of a person, or the aggregate income of persons, for any tax year for the purpose of making, amending or terminating an award of a tax credit; but such an estimate does not affect the rate at which he is, or they are, entitled to the tax credit for that or any other tax year.S. 7 wholy in force at 6.4.2003; s. 7 not in force at Royal Assent, see s. 61; s. 7(1)-(5) in force for certain purposes at 9.7.2002, 1.8.2002 and 1.1.2003 and otherwise in force at 6.4.2003, s. 7(6)-(9) in force at 9.7.2002 and s. 7(10) in force at 1.8.2002 by S.I. 2002/1727, art. 2 (with art. 3 (as substituted (20.8.2002) by S.I. 2002/2158, art. 2))Pt. 1 modified (6.4.2003) by The Tax Credits (Immigration) Regulations 2003 (S.I. 2003/653), regs. 1, 4 (as amended (6.4.2003 immediately after the coming into force of S.I. 2003/738) by S.I. 2003/742, regs. 1(1), 56 (with reg. 1(2))Pt. 1 modified (6.4.2003 immediately after the coming into force of S.I. 2003/738) by The Tax Credits (Polygamous Marriages) Regulations 2003 (S.I. 2003/742), regs. 1(1), 3-21 (as amended (6.4.2017) by S.I. 2017/387, regs. 1, 7)