The Tax Credits, Child Benefit and Guardian's Allowance Up-rating Regulations 2021

JurisdictionUK Non-devolved
CitationSI 2021/156
Year2021

2021 No. 156

Social Security

Tax Credits

The Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2021

Made 15th February 2021

Coming into force in accordance with regulation 1(2) and (3)

Following a review under section 41(1) of the Tax Credits Act 20021in the tax year 2020-21 of the amounts specified in section 41(2) of that Act, the Treasury have determined that Regulations should be made prescribing increases in those amounts.

Following a review of the sums specified in section 150(1)(a)(i) and 150(1)(i) of the Social Security Administration Act 19922in the tax year 2020-2021, the Treasury have determined that the general level of prices in Great Britain is greater at the end of the period under review than it was at the beginning. These Regulations make provision under section 150 of the Social Security Administration Act 1992 and make corresponding provision for Northern Ireland in accordance with section 132(1) of the Social Security Administration (Northern Ireland) Act 19923.

A draft of these Regulations was laid before Parliament in accordance with section 66(1) and (2)(a) of the Tax Credits Act 2002, sections 150(2) and 190(1) of the Social Security Administration Act 1992, and section 166(10A)4of the Social Security Administration (Northern Ireland) Act 1992 and approved by a resolution of each House of Parliament.

The Treasury make the following Regulations in exercise of the powers conferred by sections 7, 9, 11, 13, 65(1) and 67 of the Tax Credits Act 20025, section 150(2), (5), (9) and (10)(a)(i) of the Social Security Administration Act 19926, and section 132(1) of the Social Security Administration (Northern Ireland) Act 1992 and now exercisable by them7.

S-1 Citation, commencement and effect

Citation, commencement and effect

1.—(1) These Regulations may be cited as the Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2021.

(2) This regulation and regulations 2, 3 and 4 come into force on 6th April 2021.

(3) Regulations 5, 6 and 7 come into force on 12th April 2021.

(4) Regulations 2, 3 and 4 have effect in relation to awards of tax credits for the tax year beginning on 6th April 2021 and subsequent tax years.

S-2 Amendment of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002

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

2. The table in Schedule 2 (maximum rates of the elements of a working tax credit) to the Working Tax Credit (Entitlement and Maximum Rate) Regulations 20028is amended as follows—

(a) in item 1 (basic element), in the second column for “£1,995” substitute “£2,005”;

(b) in item 2 (disability element), in the second column for “£3,220” substitute “£3,240”;

(c) in item 3 (30 hour element), in the second column for “£825” substitute “£830”;

(d) in items 4 (second adult element) and 5 (lone parent element), in the second column for “£2,045” substitute “£2,060”; and

(e) in item 6 (severe disability element), in the second column for “£1,390” substitute “£1,400”.

S-3 Amendment of the Child Tax Credit Regulations 2002

Amendment of the Child Tax Credit Regulations 2002

3. Regulation 7 (determination of the maximum rate at which a person or persons may be entitled to child tax credit) of the Child Tax Credit Regulations 20029is amended as follows—

(a) in paragraph (4)(c) and (4)(f) for “£2,830” substitute “£2,845”;

(b) in paragraph (5)—

(i) in sub-paragraph (a) for “£3,415” substitute “£3,435”; and

(ii) in sub-paragraph (b) for “£4,800” substitute “£4,825”.

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

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

4.—(1) The Tax Credits (Income Thresholds and Determination of Rates) Regulations 200210are amended as follows.

(2) In regulation 3 (manner in which amounts to be determined for the purposes of section 7(1)(a) of the Act)—

(a)

(a) in paragraph (2) for “£6,530” substitute “£6,565”; and

(b)

(b) in paragraph (3) for “£16,385” substitute “£16,480”.

(3) In regulation 7(3) (determination of rate of working tax credit) in Step 4 for “£6,530” substitute “£6,565”.

(4) In regulation 8(3) (determination of rate of child tax credit) in Step 4 for “£16,385” substitute “£16,480”.

S-5 Amendment of the Child Benefit (Rates) Regulations 2006

Amendment of the Child Benefit (Rates) Regulations 2006

5. Regulation 2(1) (rate of child benefit) of the Child Benefit (Rates) Regulations 200611is amended as follows—

(a) in sub-paragraph (a) (enhanced rate) for “£21.05” substitute “£21.15”; and

(b) in sub-paragraph (b) (other cases) for “£13.95” substitute “£14.00”.

S-6 Amendment of Schedule 4 to the Social Security Contributions and Benefits Act 1992

Amendment of Schedule 4 to the Social Security Contributions and Benefits Act 1992

6. In paragraph 5 of Part 3 of Schedule 4 to the Social Security Contributions and Benefits Act 199212(weekly rate of guardian’s allowance) for “£17.90” substitute “£18.00”.

S-7 Amendment of Schedule 4 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992

Amendment of Schedule 4 to the Social Security Contributions and Benefits (Northern...

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