Tax Credits

	2006/07 £	2005/06 £
Working tax credit (WTC) Basic element
- max.	1,665	1,620
Childcare element 80% (70%) of eligible costs up to £175 (£175) per week (£300 (£300) if two or more children)
Child tax credit (CTC) Child element
per child - max.	1,765	1,690
Family element	545	545
Baby addition	545	545

Reductions in maximum rates 37% of income above £5,220* p.a.

*If only CTC is claimed, the threshold is £14,155 p.a. (£13,910). The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.