1 Citation, commencement, interpretation and effect

(1)    These Regulations may be cited as the Tax Credits Up-rating Regulations 2007 and shall come into force on 6th April 2007.

(2)    In these Regulations—

“the Child Tax Credit Regulations” means the Child Tax Credit Regulations 2002;

“the Entitlement Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002;

“the Income Thresholds Regulations” means the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002.

(3)    These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2007 and subsequent tax years.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see above.

Tax Credits99 Income Tax Allowances, Deductions & Reliefs95 Personal Taxes96 Tax Law96 Income Tax95

2 Amendment of the Child Tax Credit Regulations

2Amendment of the Child Tax Credit Regulations

(1)    The Child Tax Credit Regulations are amended as follows.

(2)    In regulation 7(4) (individual element)—

(a)    in sub-paragraph (a) for “£4,115” substitute “£4,285”;

(b)    in sub-paragraph (b) for “£5,060” substitute “£5,265”;

(c)    in sub-paragraph (c) for “£1,765” substitute “£1,845”;

(d)    in sub-paragraph (d) for “£4,115” substitute “£4,285”;

(e)    in sub-paragraph (e) for “£5,060” substitute “£5,265”; and

(f)    in sub-paragraph (f) for “£1,765” substitute “£1,845”.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see reg 1.

Income Tax Allowances, Deductions & Reliefs95 Personal Taxes95 Tax Law95 Income Tax95

3 Amendment of the Entitlement Regulations

3Amendment of the Entitlement Regulations

For the Table in Schedule 2 to the Entitlement Regulations substitute the Table set out in the Schedule to these Regulations.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see reg 1.

Tax Credits99 Income Tax Allowances, Deductions & Reliefs95 Personal Taxes95 Tax Law95 Income Tax95

4 Amendment of the Income Thresholds Regulations

4Amendment of the Income Thresholds Regulations

(1)    In regulation 3(3) (first income threshold for those entitled to child tax credit) for “£14,155” substitute “£14,495”.

(2)    In regulation 8(3) (determination of child tax credit) for “£14,155” (threshold amount shown at step 4) substitute “£14,495”.

NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see reg 1.

Tax Credits99 Income Tax Allowances, Deductions & Reliefs95 Personal Taxes95 Tax Law95 Income Tax95

Signature

Frank Roy

Alan Campbell

Two of the Lords Commissioners of Her Majesty's Treasury

13th March 2007

Tax Credits99 Income Tax Allowances, Deductions & Reliefs95 Personal Taxes95 Tax Law95 Income Tax95

SCHEDULE

SCHEDULE   Regulation 3

Table substituted in Schedule 2 to the Entitlement Regulations

Relevant element of working tax creditMaximum annual rate
1 Basic element£1,730
2 Disability element£2,310
3 30 hour element£705
4 Second adult element£1,700
5 Lone parent element£1,700
6 Severe disability element£980
7 50 plus element—
(a) in the case of a person who normally undertakes qualifying remunerative work for at least 16 hours but less than 30 hours per week; and£1,185
(b) in the case of a person who normally undertakes qualifying remunerative work for at least 30 hours per week
£1,770
NOTES
Initial Commencement
Specified date

Specified date: 6 April 2007: see reg 1.

Tax Credits97 Income Tax Allowances, Deductions & Reliefs95 Personal Taxes96 Tax Law96 Income Tax95

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Regulations)

Section 41 of the Tax Credits Act 2002 (c 21) requires the Treasury, in each tax year to—

(a)    review the amounts referred to in subsection (2) of that section,

(b)    prepare a report of each review; including a statement of what each of the amounts would be if it had fully retained its value, and

(c)    publish the report and lay a copy of it before each House of Parliament.

The Treasury's report of the review in respect of the tax year 2006–07 was published and laid before Parliament on—.

In consequence of the review the Treasury have made these Regulations, prescribing increases in certain of the sums required to be reviewed under section 41.

Regulation 1 provides for the citation, commencement and effect of these Regulations, and defines some terms used in them.

Regulation 2 amends regulation 7(4) of the Child Tax Credit Regulations 2002 (SI 2002/2007), increasing the maximum rate of the elements of child tax credit.

Regulation 3 and the Schedule amend Schedule 2 to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (SI 2002/2005) by substituting a new Table prescribing the maximum rates for the elements of working tax credit other than the child care element.

Regulation 4 increases the first income threshold for those entitled to child tax credit in regulation 3(3) of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (SI 2002/2008) and the threshold amount shown at step 4 in regulation 8(3) of those Regulations.

These Regulations impose no new costs on business.

Tax Credits98 Income Tax Allowances, Deductions & Reliefs95 Personal Taxes96 Tax Law96 Income Tax95