The Tax Credits Up-rating Regulations 2014

Made: 26th March 2014

Coming into force: 6th April 2014

The Treasury make the following Regulations in the exercise of the powers conferred by sections 7(1)(a), 7(3), 9, 11, 13, 65(1) and 67 of that Act[^f00002].

Citation, commencement and effect

1

• (1) These Regulations may be cited as the Tax Credits Up-rating Regulations 2014 and come into force on 6th April 2014.

• (2) These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2014 and subsequent tax years.

Amendment of the Child Tax Credit Regulations 2002

2

• (1) Regulation 7 of the Child Tax Credit Regulations 2002[^f00003] (determination of the maximum rate) is amended as follows.

• (2) In paragraph (4)—

• (a) in sub-paragraph (a) for “£5,735” substitute “£5,850”;

• (b) in sub-paragraph (b) for “£6,955” substitute “£7,105”;

• (c) in sub-paragraph (d) for “£5,735” substitute “£5,850”;

• (d) in sub-paragraph (e) for “£6,955” substitute “£7,105”.

Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

3

The table in Schedule 2 (maximum rates of the elements of a working tax credit) to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002[^f00004] is amended as follows—

• (a) in item 2 (disability element), in the second column, for “£2,855” substitute “£2,935”;

• (b) in item 6 (severe disability element), in the second column, for “£1,220” substitute “£1,255”.

Amendment of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002

4

• (1) The Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002[^f00005] are amended as follows.

• (2) In regulation 3(3) (manner in which amounts to be determined for the purposes of section 7(1)(a) of the Act) for “£15,910” substitute “£16,010”.

• (3) In regulation 8(3) (determination of rate of child tax credit) in Step 4 for “£15,910” substitute “£16,010”.

Signed

Sam Gyimah — Anne Milton — Two of the Lords Commissioners of Her Majesty’s Treasury — 26th March 2014

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

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

The Treasury’s report of the review in respect of the tax year 2013-14 was laid before Parliament on 12th February 2014 and published.

In consequence of the review the Treasury have made these Regulations, which come into force on 6th April 2014 and have effect in relation to awards of tax credits for the year beginning on 6th April 2014 and subsequent tax years, prescribing increases in certain of the sums required to be reviewed under section 41. These amounts were last amended by the Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750).

Regulation 2 amends regulation 7(4) of the Child Tax Credit Regulations 2002 (S.I. 2002/2007) so as to increase the maximum rates of the disabled and severely disabled elements of child tax credit for a child and qualifying young person.

Regulation 3 amends the table in Schedule 2 (prescribing the maximum rates for the elements of working tax credit other than the child care element) of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005) to increase the maximum rates of the disability element and severe disability element of working tax credits.

Regulation 4 amends the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008). Paragraph (2) amends regulation 3(3) of S.I. 2002/2008 (amounts prescribed for the purposes of section 7(3) of the Act) to increase the first income threshold for those entitled to child tax credit only to £16,010. Paragraph (3) amends regulation 8(3) of S.I. 2002/2008 (determination of rate of child tax credit) to substitute the sum in the formula in step 4 to reflect the increase in the first income threshold for those entitled to child tax credit only made by paragraph (2).

A full Impact Assessment has not been produced for this instrument as no impact on the private or voluntary sector is foreseen.

Footnotes

[^f00001]: 2002 c. 21.

[^f00002]: Section 67 provides that “prescribed” means “prescribed by regulations”.

[^f00003]: S.I. 2002/2007; the last relevant amending instrument is S.I. 2013/750.

[^f00004]: S.I. 2002/2005; the last relevant amending instrument is S.I. 2013/750.

[^f00005]: S.I. 2002/2008; the last relevant amending instrument is S.I. 2013/750.