Tax Credits Act 2002 section 13

Rate

Section 13 explains how the rate of a tax credit is determined, depending on whether the claimant's income falls below or above the income threshold.

• Claimants whose relevant income is at or below the income threshold receive the maximum rate of tax credit for their circumstances
• Claimants who qualify under the special income test provision in section 7(2) also receive the maximum rate
• For claimants whose income exceeds the threshold, regulations set out how the reduced rate of tax credit is calculated
• The regulations may round amounts to avoid fractions and may specify a minimum rate below which no tax credit is payable at all

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