Determination of rate of child tax creditU.K.
8.—(1) In relation to a person or persons entitled to child tax credit, the rate shall be determined by finding the rate for each relevant period and, where necessary, adding together those rates.
(2) “Relevant period” means—
(a)in the case of a person or persons entitled to child tax credit only, any part of the period of award throughout which the maximum rate at which he or they may be entitled to the tax credit remains the same;
(b)in the case of a person or persons entitled to both child tax credit and working tax credit, any part of the period of award throughout which the maximum rate of child tax credit to which he or they may be entitled remains the same and both sub-paragraphs (a) and (b) of regulation 7(2) are met.
(3) The rate for each relevant period shall be found in accordance with the following steps—
Step 1 — finding the daily maximum rate for each element
For each element of the tax credit to be included in the case of the person or persons entitled to the tax credit, find the daily maximum rate using the following formula—
where— “MR” is the maximum rate in relation to that element for the tax year to which the claim for the tax credit relates;
“N1” is the number of days in that tax year.
Step 2 — finding the maximum rate for the relevant period for each element
For each element of the tax credit to be so included, find the amount produced by multiplying the maximum rate (found under Step 1 and rounded up to the nearest penny) by the number of days in the relevant period.
Step 3 — finding income for the relevant period
Find the income for the relevant period by using the following formula—
where— “I” is the relevant income for the tax year to which the claim for the tax credit relates;
“N1” is the number of days in that tax year;
“N2” is the number of days in the relevant period.
F1F2F3F4F5F6F7F8F9F10F11F12F13F14Step 4 — finding the threshold for the relevant period
Find the amount produced by the following formula—
where— “N1” is the number of days in that tax year;
“N2” is the number of days in the relevant period.
The threshold for the relevant period is—
(a)in the case of a person or persons entitled to child tax credit only, that amount;
(b)in the case of a person or persons entitled to both child tax credit and working tax credit—
(i)that amount; or
(ii)if greater, the lowest amount of income for the relevant period (found under Step 3) which, disregarding regulation 9, would result in a determination in accordance with regulation 7 providing for no rate of working tax credit in his or their case for that period.
Step 5 — finding the amount of the reduction of the elements of the tax credit F15...
Find the amount (if any) which is [F1641%] of the amount by which the income for the relevant period (found under Step 3 and rounded down to the nearest penny) exceeds the threshold for the relevant period (found under Step 4 and rounded up to the nearest penny).
Step 6 — reducing the elements of the tax credit F15...
If the amount found under Step 5 (rounded down to the nearest penny) is less than the total of the amounts found under Step 2 for the elements of the tax credit F15..., deduct the amount found under Step 5 (rounded down to the nearest penny) from the total of those amounts.
Step 7 — reducing the elements of the tax credit F15... to nil
If the amount found under Step 5 (rounded down to the nearest penny) is equal to or exceeds the total of the amounts found under Step 2 for the elements of the tax credit F15..., reduce the total of those amounts to nil.
F17...
F17...
F17...
[F18Step 8] — finding the rate for the relevant period
[F18The 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.]
(4) “The family element” means the family element of child tax credit within the meaning given by section 9(3) of the Act.
Textual Amendments
F1Reg. 8(3): Sum "£13,910" substituted for “£13,230” (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits Up-rating Regulations 2005 (S.I. 2005/681), regs. 1(1), 4(4)
F2Reg. 8(3): Sum “£14,155” substituted for "£13,910" (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits Up-rating Regulations 2006 (S.I. 2006/963), regs. 1(1), 4(3)
F3Reg. 8(3): Sum "£14,495" substituted for “£14,155” (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits Up-rating Regulations 2007 (S.I. 2007/828), regs. 1(1), 4(2)
F4Reg. 8(3): Sum “£15,575” substituted for “£14,495” (6.4.2008) by The Tax Credits Up-rating Regulations 2008 (S.I. 2008/796), regs. 1(1), 4(5)(a)
F5Reg. 8(3): Sum "£16,040" substituted for “£15,575” (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits Up-rating Regulations 2009 (S.I. 2009/800), regs. 1(1), 4(3)
F6Reg. 8(3): Sum “£16,190” substituted for “£16,040” (with effect in accordance with reg. 1(3) of the amending S.I.) by The Tax Credits Up-rating Regulations 2010 (S.I. 2010/981), regs. 1(1), 4(3)
F7Reg. 8(3): Sum “£15,860” substituted for “£16,190” (6.4.2011) by The Tax Credits Up-rating Regulations 2011 (S.I. 2011/1035), regs. 1, 4(5)(a)
F8Reg. 8(3): Sum “£15,910” substituted for “£15,860” (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating, etc. Regulations 2013 (S.I. 2013/750), regs. 1(1), 4(4)
F9Reg. 8(3): Sum “£16,010” substituted for “£15,910” (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Regulations 2014 (S.I. 2014/845), regs. 1(1), 4(3)
F10Reg. 8(3): Sum “£16,105” substituted for “£16,010” (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Regulations 2015 (S.I. 2015/451), regs. 1(1), 4(3)
F11Reg. 8(3): Sum “£16,385” substituted for “£16,105” (6.4.2020) by The Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2020 (S.I. 2020/298), regs. 1(2), 4(4) (with reg. 1(3))
F12Reg. 8(3): Sum “£16,480” substituted for “£16,385” (with effect in accordance with reg. 1(4) of the amending S.I.) by The Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2021 (S.I. 2021/156), regs. 1(2), 4(4)
F13Reg. 8(3): Sum “£17,005” substituted for “£16,480” (6.4.2022) by The Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2022 (S.I. 2022/231), regs. 1(2), 4(4) (with reg. 1(4))
F14Reg. 8(3): Sum “£19,995” substituted for “£17,005” (6.4.2024) by The Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2024 (S.I.) 2024/247 regs. 1(2), 4(4)
F15Words in reg. 8(3) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Tax Credits Up-rating Regulations 2012 (S.I. 2012/849), regs. 1(1), 4(5)(a)
F16Word in reg. 8(3) substituted (6.4.2011) by The Tax Credits Up-rating Regulations 2011 (S.I. 2011/1035), regs. 1, 4(5)(b)
F17Words in reg. 8(3) omitted (with effect in accordance with reg. 1(2) of the amending S.I.) by virtue of The Tax Credits Up-rating Regulations 2012 (S.I. 2012/849), regs. 1(1), 4(5)(b)
F18Words in reg. 8(3) substituted (with effect in accordance with reg. 1(2) of the amending S.I.) by The Tax Credits Up-rating Regulations 2012 (S.I. 2012/849), regs. 1(1), 4(5)(c)
Modifications etc. (not altering text)
C1Reg. 8(3) modified (E.W.S.) (29.4.2013) by The Universal Credit (Transitional Provisions) Regulations 2013 (S.I. 2013/386), regs. 1(2), 17, Sch. para. 32(a)(b)
C2Reg. 8(3) modified (E.W.S.) (29.4.2013) by The Universal Credit (Transitional Provisions) Regulations 2013 (S.I. 2013/386), regs. 1(2), 17, Sch. para. 32(b)(i)
C3Reg. 8(3) modified (E.W.S.) (29.4.2013) by The Universal Credit (Transitional Provisions) Regulations 2013 (S.I. 2013/386), regs. 1(2), 17, Sch. para. 32(b)(ii)
Commencement Information
I1Reg. 8 in force (1.8.2002) for specified purpose and in force (1.1.2003) for further specified purpose, otherwise (6.4.2003) for all other purposes.