Valid from 27/07/1999
(1)If a qualifying child (or more than one) is resident with the claimant during the whole or part of the year of assessment, the claimant shall be entitled to an income tax reduction, to be known as a children’s tax credit.
(2)The reduction shall be calculated by reference to £4,160.
(3)Where any part of the claimant’s income for the year of assessment falls within section 1(2)(b), his children’s tax credit for the year shall be calculated as if the amount specified in subsection (2) above were reduced by £2 for every £3 of that part of his income.
(4)In this section “qualifying child” means, in relation to a person—
(a)a child of his who has not attained the age of 16, or
(b)a child who has not attained the age of 16 and who is maintained by, and at the expense of, the person for any part of the year of assessment;
and “child” includes illegitimate child and stepchild.
(5)Schedule 13B (which modifies this section where a child lives with more than one adult during a year of assessment) shall have effect.]
Textual Amendments
F1S. 257AA inserted (with effect in accordance with s. 30(5) of the amending Act) by Finance Act 1999 (c. 16), s. 30(1)