Reply To: Income

#2018
Mark
Participant

Can I just go back to the earlier part of this thread in relation to Child Dependancy increases.

I had suggested that these were abolished when the New Tax Credits came in – but I now want to revise that view.

Child Dependancy Increases were indeed abolished by Section 1(3)(e) of The Tax Credits Act 2002. However, the commencement order that dictates the effective date of abolition can be found in SI2003/938. This shows that the abolition date for the increases was 6th April 2003. However, at Reg 3 of those same regulations it is clear that transitional provisions exist for anyone who was already getting the child dependency increase before the abolition.

The net effect of this is that for some pensioners the child dependancy increases do still exist and in the assessment of HB/CTB these specific amounts will need to be disregarded in any income calculation as per new HB reg 25(1)(h)(vii).