Commentary on provisions of Act Section 13: Changes to child tax credit
The section makes amendments to section 9 of the Tax Credits Act 2002 which makes provision for the maximum rate at which a person or persons may be entitled to child tax credit (CTC).
	Subsection (2)(a) amends section 9(2)(a) of the Tax Credits Act 2002 by substituting wording so that it provides for an element (defined in section 9(3) as the family element), which must be included in the prescribed manner of determination of the maximum rate of CTC, in respect of every person or persons entitled to CTC who is or are responsible for a child or qualifying young person born prior to 6 April 2017.
	Subsection (2)(b) inserts a new paragraph (c) into subsection (2) of section 9 of the Tax Credits Act 2002 to provide for a new element ("the disability element") which must be included in the prescribed manner of determination of the maximum rate of CTC in the case of a child or qualifying young person who is disabled or severely disabled. This disability element will ensure that the equivalent of the higher amount of the individual element of CTC for disabled and severely disabled children will continue to be available from 6 April 2017. The disability element will be payable in respect of all disabled children or qualifying young persons regardless of their date of birth and whether they are the first, second, third or subsequent child or qualifying young persons in the family.
	Subsection (5) substitutes a new paragraph (c) into section 9(5) of the Tax Credits Act 2002 so as to provide that the prescribed manner of determination of the maximum rate of CTC may include provision for the disability element of CTC to vary according to whether the child or qualifying young person is disabled or severely disabled.
	Subsection (3) inserts new wording in subsection (3) of section 9 of the Tax Credits Act 2002 to define the element provided for in new section 9(2)(c) as the disability element of CTC.
	Subsection (4) inserts two new subsections (3A and 3B) into section 9 of the Tax Credits Act 2002.
	New subsection (3A) of section 9 of the Tax Credits Act 2002 provides for new subsection (3B) to apply in a case of a person or persons entitled to CTC who is or are responsible for a child or qualifying young person born on or after 6 April 2017.
	New subsection (3B) of section 9 of the Tax Credits Act 2002 provides that the prescribed manner of determination in relation to the person or persons to whom new subsection (3A) applies must not include an individual element of CTC in respect of a child or qualifying young person born on or after 6 April 2017 unless they are claiming the individual element for no more than one other child or a prescribed exception applies. An exception will apply, for example, to protect instances of multiple births where a family would otherwise have exceeded two children in a family. Section 67 of the Tax Credits Act 2002 provides that for the purposes of Part 1 of the Tax Credits Act 2002, "prescribed" means prescribed by regulations.