Tax credits
The following tax credit rates are shown below:
Child Tax Credit
| £ per year (unless stated) | 2006/07 | 2005/06 |
|---|
| Family element | 545 | 545 |
| Family element, baby addition | 545 | 545 |
| Child element | 1,765 | 1,690 |
| Disabled child element | 2,350 | 2,285 |
| Severely disability child element | 945 | 920 |
Income thresholds and withdrawal rates
| £ per year (unless stated) | 2006/07 | 2005/06 |
|---|
| First income threshold | 5,220 | 5,220 |
| First withdrawal rate (per cent) | 37 | 37 |
| Second income threshold | 50,000 | 50,000 |
| Second withdrawal rate (per cent) | 6.67 | 6.67 |
| First threshold for those entitled to Child Tax Credit only | 14,155 | 13,910 |
| Income disregard | 25,000 | 2,500 |
Working Tax Credit
| £ per year (unless stated) | 2006/07 | 2005/06 |
|---|
| Basic element | 1,665 | 1,620 |
| Couple and lone parent element | 1,640 | 1,595 |
| 30 hour element | 680 | 660 |
| Disabled worker element | 2,225 | 2,165 |
| Severe disability element | 945 | 920 |
| 50+ return to work payment (16-29 hours) | 1,140 | 1,075 |
| 50+ return to work payment (30+ hours) | 1,705 | 1,610 |
Childcare element of the Working Tax Credit
| £ per year (unless stated) | 2006/07 | 2005/06 |
|---|
| Maximum eligible cost for one child | 175 per week | 175 per week |
| Maximum eligible cost for two or more children | 300 per week | 300 per week |
| Percentage of eligible costs covered | 80% | 70% |
This page was last reviewed on 03 April 2006.
The information may not reflect changes in legislation made after this date.
