CCM1040 - Overview: Objectives of Tax Credits
A key objective of the system is to target support to families
on the basis of need. Tax credits provide a way for the tax system
to recognise a family’s or couple’s circumstances in
the tax year. They address the specific needs of the family, by
including additional payments to take into account the number of
people in it and any special needs they have, for example, there
are extra payments for a child with a disability.
The amounts of the payments also relate to the income
available to meet those needs: that means that the incomes of both
members of a couple are taken into account. Depending on which tax
credit is in payment, it will be paid either direct to one member
of the couple.
