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SCHEDULE 11
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CHILDREN'S TAX CREDIT: BABY RATE: SUPPLEMENTARY |
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Introduction |
| | 1. Schedule 13B to the Taxes Act 1988 (children's tax credit: provisions applicable where child lives with more than one adult in a year of assessment) is amended as follows.
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Child living with married or unmarried couple |
| | 2. After paragraph 3(2) (provisions applicable where neither partner has income above the basic rate limit: entitlement where both partners claim in respect of a relevant child) insert-
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"(2A) If a relevant child is a qualifying baby the reference in sub-paragraph (2)(b) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".
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Election that credit should go to lower-earning partner |
| | 3. In paragraph 5(4) (circumstances in which election may be made for current year of assessment), after paragraph (c) insert-
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"(ca) a relevant child is born in that year, or". |
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Child living with more than one adult: other cases |
| | 4. - (1) Paragraph 6 (provisions applicable in case of child living with more than one adult) is amended as follows.
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(2) After sub-paragraph (4) (apportionment of entitlement) insert-
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"(4A) If the child is a qualifying baby the reference in sub-paragraph (4) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".
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(3) After sub-paragraph (7) (claim by person with more than one allotted proportion) insert-
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"(7A) Where sub-paragraph (7) above applies in relation to a person, and any child in respect of which a proportion has been, or could have been, allotted to that person is a qualifying baby, the reference in that sub-paragraph to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".
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Combined cases |
| | 5. In paragraph 7 (provisions applicable where child lives with more than one couple or with one or more couples and one or more other adults), after sub-paragraph (2) insert-
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"(3) Where paragraph 6(4A) or (7A) above applies, the reference in sub-paragraph (2) above to the amount mentioned in section 257AA(2) is to the higher amount applicable by virtue of subsection (2A) of that section.".
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Change of circumstances |
| | 6. - (1) Paragraph 8 (change of circumstances) is amended as follows.
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(2) In sub-paragraph (4) (periods before and after change to be treated as years of assessment for certain purposes), after "section 257AA" insert "(except subsection (4A))".
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(3) After sub-paragraph (5) (apportionment of amounts) insert-
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"(5A) If the child is a qualifying baby the references in sub-paragraph (5) above to the amount specified in section 257AA(2) are to the higher amount applicable by virtue of subsection (2A) of that section.".
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