TaxPersonal TaxBrown’s boost for kids’ credit

Brown's boost for kids' credit

The chancellor today demonstrated his family man credentials after announcing an increase in the Children's Tax Credit.

Gordon Brown placed the needs of ‘the family’ at the heart of his Budget after revealing CTC – which will be introduced in April – will be worth £10 a week, an increase on the expected £8.50 a week.

Alastair Kendrick, Ernst & Young tax director, said: ‘I wonder if there is likely to be an imminent announcement in the Brown household. This is truly family planning.’The move represents a tax cut for families with children under 16, according to Brown – worth 3p off the basic rate of tax for a single earner family on average earnings.

Additionally, from April 2002 CTC will also be increased by an additional £10 a week for families in the first year of a child’s birth.

Continuing on his family theme, the Working Families’ Tax Credit will be increased by £5 a week from June this year.

Brown also explained the need to balance work and family life as he announced the introduction of two weeks paternity leave at £100 a week and a rise in maternity pay to £75 a week by 2002.

Links

Budget 2001

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter