Statutory Instruments
2016 No. 393
Tax Credits
The Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2016
Made
16th March 2016
Coming into force
6th April 2016
A draft of these Regulations was laid before, and approved by a resolution of, each House of Parliament in accordance with section 66(1) and (2)(a) of the Tax Credits Act 2002(1).
The Treasury make the following Regulations in exercise of the powers conferred by sections 7(3)(a) and (b), 65(1) and 67(2) of that Act.
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2016 and come into force on 6th April 2016.
(2) These Regulations have effect in relation to awards of tax credits for the tax year beginning on 6th April 2016 and subsequent tax years.
Amendment of the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002
2.—(1) The Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002(3) are amended as follows.
(2) In regulation 5(a) (amounts prescribed for the purposes of section 7(3)(a) and (b) of the Act) for “£5,000” substitute “£2,500”.
David Evennett
Mel Stride
Two of the Lords Commissioners of Her Majesty’s Treasury
16th March 2016
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations are made by the Treasury under section 7 of the Tax Credits Act 2002 (c. 21).
Regulation 2 amends the Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 (S.I. 2002/2008) so as to decrease from £5,000 to £2,500 the amount of income that is disregarded for the purposes of determining entitlement to tax credits for the current year where the income for that year exceeds the income from the previous year (“the income rise disregard”).
A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.
Section 67 provides that “prescribed” means “prescribed by regulations”.
S.I. 2002/2008, amended by SI 2013/750; there are other amending instruments but none is relevant.