MaxGhenis · Oct 2, 2026 · Oct 2, 2026 · Oct 2, 2026 · Oct 2, 2026 · Oct 3, 2026
diff --git a/changelog.d/tax-credits-pension-credit-passport.fixed.md b/changelog.d/tax-credits-pension-credit-passport.fixed.md
@@ -0,0 +1,2 @@
+- Lift the tax credit income test for a claimant or couple entitled to State Pension Credit, guarantee credit or savings credit (TCA 2002 s.7(2); SI 2002/2008 reg 4(1)(d)). Working tax credit is Pension Credit income (SPCA 2002 s.15(1)(b)), so the passport applies where Pension Credit is payable with the passported award counted as income. The new parameter `gov.dwp.tax_credits.means_test.pension_credit_passport` dates the rule from 26 November 2003.
+- Add `tax_credits_current_year_income`, the tax credit income before the passport (TCA 2002 s.7(4); SI 2002/2006 reg 3). `tax_credits_applicable_income` is that income, or nil while the test is lifted. The targeted childcare tax credit criteria now test the gross income against the £16,190 limit (SI 2014/2147 reg 1(2)), not the nil income of a passported award.
diff --git a/policyengine_uk/parameters/gov/dwp/tax_credits/means_test/pension_credit_passport.yaml b/policyengine_uk/parameters/gov/dwp/tax_credits/means_test/pension_credit_passport.yaml
@@ -0,0 +1,15 @@
+description: Whether entitlement to State Pension Credit (either credit) lifts the tax credit income test.
+values:
+  2003-04-06: false
+  # SI 2003/2815 reg 18 added reg 4(1)(d) from 26 November 2003.
+  2003-11-26: true
+metadata:
+  unit: bool
+  label: Pension Credit tax credit passport
+  reference:
+    - title: Tax Credits Act 2002 s. 7(2)
+      href: https://www.legislation.gov.uk/ukpga/2002/21/section/7
+    - title: The Tax Credits (Income Thresholds and Determination of Rates) Regulations 2002 reg. 4(1)(d)
+      href: https://www.legislation.gov.uk/uksi/2002/2008/regulation/4
+    - title: The Tax Credits (Miscellaneous Amendments No.2) Regulations 2003 reg. 18
+      href: https://www.legislation.gov.uk/uksi/2003/2815/regulation/18
diff --git a/...dcare_entitlement/meets_child_tax_credit_criteria_for_targeted_childcare_entitlement.yaml b/...dcare_entitlement/meets_child_tax_credit_criteria_for_targeted_childcare_entitlement.yaml
@@ -8,7 +8,7 @@
       benunit:
         members: [person]
         child_tax_credit: 1
-        tax_credits_applicable_income: 16_190
+        tax_credits_current_year_income: 16_190
   output:
     meets_child_tax_credit_criteria_for_targeted_childcare_entitlement: true
 
@@ -23,7 +23,7 @@
         members: [person]
         child_tax_credit: 1
         working_tax_credit: 1
-        tax_credits_applicable_income: 16_190
+        tax_credits_current_year_income: 16_190
   output:
     meets_child_tax_credit_criteria_for_targeted_childcare_entitlement: false
 
@@ -37,6 +37,6 @@
       benunit:
         members: [person]
         child_tax_credit: 1
-        tax_credits_applicable_income: 16_191
+        tax_credits_current_year_income: 16_191
   output:
     meets_child_tax_credit_criteria_for_targeted_childcare_entitlement: false
diff --git a/...are_entitlement/meets_working_tax_credit_criteria_for_targeted_childcare_entitlement.yaml b/...are_entitlement/meets_working_tax_credit_criteria_for_targeted_childcare_entitlement.yaml
@@ -8,7 +8,7 @@
       benunit:
         members: [person]
         working_tax_credit: 1
-        tax_credits_applicable_income: 16_190
+        tax_credits_current_year_income: 16_190
   output:
     meets_working_tax_credit_criteria_for_targeted_childcare_entitlement: true
 
@@ -22,7 +22,7 @@
       benunit:
         members: [person]
         child_tax_credit: 1
-        tax_credits_applicable_income: 16_190
+        tax_credits_current_year_income: 16_190
   output:
     meets_working_tax_credit_criteria_for_targeted_childcare_entitlement: false
 
@@ -36,6 +36,6 @@
       benunit:
         members: [person]
         working_tax_credit: 1
-        tax_credits_applicable_income: 16_191
+        tax_credits_current_year_income: 16_191
   output:
     meets_working_tax_credit_criteria_for_targeted_childcare_entitlement: false
Original file line number	Diff line number	Diff line change
		@@ -0,0 +1,2 @@
		- Lift the tax credit income test for a claimant or couple entitled to State Pension Credit, guarantee credit or savings credit (TCA 2002 s.7(2); SI 2002/2008 reg 4(1)(d)). Working tax credit is Pension Credit income (SPCA 2002 s.15(1)(b)), so the passport applies where Pension Credit is payable with the passported award counted as income. The new parameter `gov.dwp.tax_credits.means_test.pension_credit_passport` dates the rule from 26 November 2003.
		- Add `tax_credits_current_year_income`, the tax credit income before the passport (TCA 2002 s.7(4); SI 2002/2006 reg 3). `tax_credits_applicable_income` is that income, or nil while the test is lifted. The targeted childcare tax credit criteria now test the gross income against the £16,190 limit (SI 2014/2147 reg 1(2)), not the nil income of a passported award.