HM Treasury’s United Kingdom Budget 2007

Grant Thornton

Grant Thornton

Tax Credits

Working Tax Credit (WTC)

  2007/08 2006/07
  £ £
Annual
Basic element 1,730 1,665
Second adult or lone parent addition 1,700 1,640
30 hour element 705 680
Disability element 2,310 2,225
Severe disability element 980 945
Age 50+ element working 16-29 hours per week1 1,185 1,140
Age 50+ element working 30+ hours per week1 1,770 1,705
Weekly
Childcare element
maximum eligible cost for 1 child 2 175 175
maximum eligible cost for 2 or more children 2 300 300

Claimants can be eligible for each element.
Claim reduced by 37p for every £1 of annual income over £5,220.

1 Mutually exclusive
2 Reduced to 70% of eligible cost

Child Tax Credit (CTC)

  2007/08 2006/07
  £ £
Annual
Family element (double in year of birth)1 545 545
Child element (per child)2
– disabled child 4,285 4,115
– severely disabled child 5,265 5,060
– any other child 1,845 1,765

1 Claim reduced by £1 for every £15 of annual income over £50,000.
2 Where only CTC available claim reduced by 37p for every £1 of annual income over £14,495 ( £14,155 2006/2007); £5,220 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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