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Up-rating of working tax credit etc

Coronavirus Bill – in the House of Commons at 10:00 pm on 23rd March 2020.

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(1) In the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 (S.I. 2002/2005), in the table in Schedule 2 (maximum rates of the elements of a working tax credit), item 1 (basic element) has effect in relation to the tax year 2020-21 as if the amount specified in the second column (maximum annual rate) were £3,040.

(2) The modification made by subsection (1) does not apply for the purposes of any annual review carried out in accordance with section 41 of the Tax Credits Act 2002.

(3) Where a sum mentioned in section 150(1) of the Social Security Administration Act 1992 (annual review in relation to up-rating of benefits) is modified in relation to the tax year 2020-21 for purposes connected with coronavirus or coronavirus disease, the modification does not apply for the purposes of any annual review carried out in accordance with that subsection.”—(Penny Mordaunt.)

This amendment increases the basic element of working tax credit for the tax year 2020-21 to £3,040 but provides that an annual review relating to this benefit is to be based on the amount it would have been without this increase. It also provides that, if the amounts of certain other benefits are modified for purposes connected with coronavirus or coronavirus disease, annual reviews relating to those benefits are to be based on the amount that the benefits would have been if they had not been modified.

Brought up, and added to the Bill.