LI 2018/239
Issued
2019

Minimum family tax credit threshold rises for the 2019-20 tax year

The household income threshold for the minimum family tax credit (“MFTC”), which guarantees eligible low-income families a minimum level of after-tax income, rises from $26,156 to $26,572 per year, on 1 April 2019..

The household income threshold for the minimum family tax credit (“MFTC”), which guarantees eligible low-income families a minimum level of after-tax income, rises from $26,156 to $26,572 per year, on 1 April 2019.

The new threshold was approved by the Income Tax (Minimum Family Tax Credit) Order 2018 on 26 November 2018. The new regulation also revokes the Income Tax (Minimum Family Tax Credit) Order 2015 (LI 2015/294) and Income Tax (Minimum Family Tax Credit) Order 2016 (LI 2016/282) as they are now obsolete.

The MFTC provides a top-up to after-tax income for eligible working families and ensures families do not face a reduction in after-tax income when they move off a benefit and into paid employment.

The increase applies for the 2019–20 and later tax years.

Income Tax (Minimum Family Tax Credit) Order 2018 (LI 2018/239)