The Tax Credits Up-rating Regulations 2012

• Citation: S.I. 2012/849
• Sections: 5

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Tax Credits Up-rating Regulations 2012 and come into force on 6th April 2012.

(2) These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2012 and subsequent tax years.

Section 2 Amendment of the Child Tax Credit Regulations 2002

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

(2) In paragraph (4)—

(a) in sub-paragraph (a) for “£5,355” substitute “£5,640”;

(b) in sub-paragraph (b) for “£6,485” substitute “£6,830”;

(c) in sub-paragraph (c) for “£2,555” substitute “£2,690”;

(d) in sub-paragraph (d) for “£5,355” substitute “£5,640”;

(e) in sub-paragraph (e) for “£6,485” substitute “£6,830”;

(f) in sub-paragraph (f) for “£2,555” substitute “£2,690”.

Section 3 Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

(1) The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 are amended as follows.

(2) For the Table in Schedule 2 (maximum rates of the elements of a working tax credit) substitute—

Section 4 Amendment of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002

(1) The Tax Credits (Income Thresholds and Determinations of Rates) Regulations 2002 are amended as follows.

(2) In the heading before regulation 5 (income test: relevant income) for “Amounts prescribed for the purposes of section 7(3)(a) and (b) of the Act” substitute “Amounts prescribed for the purposes of section 7(3) of the Act”.

(3) For regulation 5 substitute—

(5) The amount prescribed—

(a) for the purposes of section 7(3)(a) and (b) of the Act is £10,000; and

(b) for the purposes of section 7(3)(c) and (d) of the Act is £2,500.

(4) In regulation 7(3) (determination of rate of working tax credit) in Step 5 for “39%” substitute “41%” .

(5) In regulation 8(3) (determination of rate of child tax credit)—

(a) in each of the headings before Steps 5, 6 and 7, and in Steps 6 and 7, omit “(other than the family element)”;

(b) omit Steps 8, 9 and 10;

(c) in consequence of the amendments made by paragraph (b), Step 11 is renumbered as “Step 8” and for the words from “Add together” to “This is the rate for the relevant period.” substitute—

The rate for the relevant period is the total of the amounts found under Step 2 for the elements of the tax credit after any reduction in accordance with Step 6 or Step 7.

Section 5 The Tax Credits Up-rating Regulations 2011: continuance of effect

The amendments made by the following provisions of the Tax Credits Up-rating Regulations 2011 continue to have effect in relation to awards of tax credits for the tax year beginning on 6th April 2012 and subsequent tax years—

(a) Regulation 2(2) (amendment of the Child Tax Credit Regulations 2002: family element);

(b) Regulation 3(2) (amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002: child care element);

(c) Regulation 4(2), (4), (5)(a) and (b) (amendment of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002: income thresholds and rates of tax credits).