Summary
3.The Act makes provision for two tax credits - the child tax credit for families with children and the working tax credit for working households facing low income, including those in which a worker has a disability. The two tax credits together are intended to create a single income-related strand of support for families with children, complemented by a single strand of support for adults in work. The tax credits will be administered by the Inland Revenue. The Act establishes the administrative framework for the two tax credits and sets out the conditions of entitlement to, and the elements of, those credits.
4.The Act also provides for the transfer of responsibility for the administration of child benefit and guardian’s allowance from the Department for Work and Pensions and, in Northern Ireland, the Department for Social Development to the Inland Revenue.
5.An overview of the Act is set out at paragraphs 22 to 39, below.