Budget 2004

Grant Thornton


Miscellaneous

Grant Thornton

Tax Credits

Working Tax Credit (WTC)
Applies from 6 April 2003

  2004/05 2003/04
 
£
£
Annual
Basic element
1,570
1,525
Second adult or lone parent addition
1,545
1,500
30 hour element
640
620
Disability element
2,100
2,040
Severe disability element
890
865
Age 50+ element working 16-30 hours per week*
1,075
1,045
Age 50+ element working at least 30 hours per week*
1,610
1,565
Weekly
Childcare element
maximum eligible cost for 1 child
135
135
maximum eligible cost for 2 or more children
200
200

Claimants can be eligible for each element
Claim reduced by 37p for every £1 of annual income over £5,060

* Mutually exclusive
Reduced to 70% of eligible cost

Child Tax Credit (CTC)

  2004/05
2003/04
 
£
£
Annual
Family element (double in year of birth)*
545
545
Child element (per child)
– disabled child
3,840
3,600
– severely disabled child
4,730
4,465
– any other child
1,625
1,445

* Claim reduced by £1 for every £15 of annual income over £50,000
Where only CTC available claim reduced by 37p for every £1 of annual income over £13,480 ( £13,230 2003/2004); £5,060 where WTC also available

Pension Credit

Introduced 6 October 2003
Payable from age 60 * subject to income levels
Two elements

  • guaranteed credit, available to all aged 60 and over
  • savings credit, available to those aged 65 and over who have made provision for retirement eg, savings, personal pension
£
Maximum capital for pension credit to be unaffected †‡
6,000.00
Standard amount needed for day-to-day living §
– single person per week
102.10
– couple per week
155.80
Savings credit starting point qualifying income
– single person per week
77.45
– couple per week
123.80
Maximum guaranteed pension credit
– single person per week
14.79
– couple per week
19.20
Maximum savings credit
– single person per week
14.79
– couple per week
19.20

* Applies where at least one party in a couple is aged 60
Per person, or if a couple, per couple
£10,000 if living in a care home
§ May include extras for disability, carers and housing

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.

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