Statutory Instruments

2004 No. 941

TAX CREDITS

The Tax Credits Up-rating Regulations 2004

Made

29th March 2004

Coming into force

6th April 2004

Whereas the Treasury have reviewed the amounts specified in section 41(2) of the Tax Credits Act 2002( 1 ) in order to determine whether they have retained their value in relation to general level of prices in the United Kingdom;

And whereas a draft of these Regulations, which prescribe monetary amounts that are required to be reviewed under that section, was laid before, and approved by resolution of, each House of Parliament, pursuant to section 66(1) and (2)(a) of that Act;

Now therefore the Treasury, in exercise of the powers conferred upon them by sections 7(1)(a), 9, 11, 13(2) and 65(1) of that Act, make the following Regulations:

Citation, commencement, effect and interpretation

1. —(1) These Regulations may be cited as the Tax Credits Up-rating Regulations 2004 and shall come into force on 6th April 2004.

(2) In these Regulations—

“the Child Tax Credit Regulations” means the Child Tax Credit Regulations 2002 ( 2 );

“the Entitlement Regulations” means the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 ( 3 );

“the Income Thresholds Regulations” means the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 ( 4 ).

(3) These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2004 and subsequent tax years.

Amendment of the Child Tax Credit Regulations

2. In regulation 7(4) of the Child Tax Credit Regulations (individual element of the child tax credit)—

(a) in sub-paragraph (a) for “£3,600” substitute “£3,840”;

(b) in sub-paragraph (b) for “£4,465” substitute “£4,730”;

(d) in sub-paragraph (d) for “£3,600” substitute “£3,840”;

(e) in sub-paragraph (e) for “£4,465” substitute “£4,730”; and

(f) in sub-paragraph (f) for “£1,445” substitute “£1,625”.

Amendment of the Entitlement Regulations

3. 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 Regulations

4. In regulation 3(3) of the Income Thresholds Regulations (first income threshold for those entitled to child tax credit) for “£13,230” substitute “£13,480”.

John Heppell

Jim Murphy

Two of the Lords Commissioners of Her Majesty’s Treasury

29th March 2004

Regulation 3

SCHEDULE Table substituted in Schedule 2 to the Entitlement Regulations

Relevant element of working tax credit	Maximum annual rate
1. Basic element	£1,570
2. Disability element	£2,100
3. 30 hour element	£640
4. Second adult element	£1,545
5. Lone parent element	£1,545
6. Severe disability element	£890
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	£1,075
(b) in the case of a person who normally undertakes qualifying remunerative work for at least 30 hours per week	£1,610

( 1 )

2002 c. 21

( 2 )

S.I. 2002/2007 .

( 3 )

S.I. 2002/2005 .

( 4 )

S.I. 2002/2008 .

in force	Provision is in force
in force*	In force only for specified purposes (see footnote)
not in force	Not in force in England (may be in force in other geographies, see footnotes)
defined term	Defined term
_dfn	Defined term (alternative style)

footnote	commentary	transitional and savings	in force status	related provisions	geo extent	insert/omit	source count	in force adj

Defined Term	Section/Article	ID
the Child Tax Credit Regulations	reg. 1.	def_c61a2a72a4
the Entitlement Regulations	reg. 1.	def_cb33310b1b
the Income Thresholds Regulations	reg. 1.	def_22b1fe4de4