Involvement of Lords Spiritual in debate on tax credits
Whilst financial issues are not a mainstream topic for L&RUK, in view of the involvement of the bishops and the Archbishop of York in the debate on the amendments to the Tax Credits (Income Thresholds and Determination of Rates) (Amendment) Regulations 2015, [26 Oct 2015 Vol 765 (56) Col 975], it is pertinent to post a short summary of the relevant parts of the proceedings. The Regulations were made under the Tax Credits Act 2002 which provided that amendments to tax credit legislation could be made by statutory instruments or delegated legislation in order that normal uprating, for example, could be applied.
UK Parliament explains:
“These regulations propose that, from April 2016, the income threshold for Working Tax Credit (WTC) should be reduced to £3,850; and the income threshold for Child Tax Credit (CTC) to £12,125. They also propose that the income rise disregard should be reduced to £2,500; and that the taper rate should be increased to 48%. Continue reading