2005 No. 681
The Tax Credits Up-rating Regulations 2005
Made
Coming into force
As a result of carrying out in the tax year 2004-05 a review of the amounts specified in section 41(2) of the Tax Credits Act 20021 (“the Act”)and in accordance with section 41(1) of the Act, the Treasury have determined that Regulations should be made prescribing increases in some of those sums.
A draft of these Regulations was laid before Parliament in accordance with section 66(1) and (2)(a) of the Act and approved by resolution of each House of Parliament.
Accordingly the Treasury in exercise of the powers conferred upon them by sections 7(1)(a), 9, 11, 13 and 65(1) of the Act, make the following Regulations:
Citation, commencement, effect and interpretation1
1
These Regulations may be cited as the Tax Credits Up-rating Regulations 2005 and shall come into force on 6th April 2005.
2
In these Regulations
“the Child Tax Credit Regulations” means the Child Tax Credit Regulations 20022
“the Entitlement Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20023
“the Income Thresholds Regulations” means the Tax Credits (Income Thresholds and Determination of Rates) Regulations 20024
3
These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2005 and subsequent tax years.
Amendment of Child Tax Credit Regulations2
1
The Child Tax Credit Regulations are amended as follows.
2
In regulation 7(4) (individual element)—
a
in sub-paragraph (a) for “£3,840” substitute “£3,975”;
b
in sub-paragraph (b) for “£4,730” substitute”£4,895”;
c
in sub-paragraph (c) for “£1,625” substitute “£1,690”;
d
in sub-paragraph (d) for “£3,840” substitute “£3,975”;
e
in sub-paragraph (e) for “£4,730” substitute “£4,895”;
f
in sub-paragraph (f) for “£1,625” substitute “£1,690”.
Amendment of the Entitlement Regulations3
1
In regulation 20(3) of the Entitlement Regulations(maximum rate of the child care element of a working tax credit)—
a
in sub-paragraph (a) for “£135” substitute “£175”.
b
in sub-paragraph (b) for “£200” substitute “£300”.
2
For the Table in Schedule 2 to the Entitlement Regulations substitute the Table set out in the Schedule to these Regulations.
Amendment of the Income Thresholds Regulations4
1
In regulation 3(2) of the Income Thresholds Regulations (first income threshold for those entitled to working tax credit) for “£5,060” substitute “£5,220”.
2
In regulation 3(3) of the Income Thresholds Regulations (first income threshold for those entitled to child tax credit) for “£13,480” substitute “£13,910”.
3
In regulation 7(3) (determination of rate of working tax credit) for “£5,060” (threshold amount shown at step 4) substitute “£5,220”.
4
In regulation 8(3) (determination of child tax credit) for “£13,230” (threshold amount shown at step 4) substitute “£13,910”.
SCHEDULETable substituted in Schedule 2 to the Entitlement Regulations
Relevant element of working tax credit | Maximum annual rate |
---|---|
| £1,620 |
| £2,165 |
| £660 |
| £1,595 |
| £1,595 |
| £920 |
| |
| £1,110 |
| £1,660 |
(This note is not part of the Regulations)