HM Treasury’s United Kingdom Budget 2005

brought to you courtesy of Grant Thornton


brought to you courtesy of Grant ThorntonTax Credits

Working Tax Credit (WTC)
Applies from 6 April 2003

  2005/06 2004/05
 
£
£
Annual
Basic element
1,620
1,570
Second adult or lone parent addition
1,595
1,545
30 hour element
660
640
Disability element
2,165
2,100
Severe disability element
920
890
Age 50+ element working 16-29 hours per week*
1,110
1,075
Age 50+ element working 30+ hours per week*
1,660
1,610
Weekly
Childcare element
maximum eligible cost for 1 child
175
135
maximum eligible cost for 2 or more children
300
200

Claimants can be eligible for each element
Claim reduced by 37p for every £1 of annual income over £5,220 (£5,060 2004/05)

* Mutually exclusive
Reduced to 70% of eligible cost

Child Tax Credit (CTC)

  2005/06
2004/05
 
£
£
Annual
Family element (double in year of birth)*
545
545
Child element (per child)
– disabled child
3,975
3,840
– severely disabled child
4,895
4,730
– any other child
1,690
1,625

* 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 £13,910 ( £13,480 2004/2005); £5,220 (£5,060 2004/05) where WTC also available

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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