Committee publication · Correspondence · 2 June 2026
Correspondence from the Chief Secretary to the Treasury on Tax Credits Act 2002, dated 28 May 2026
From: Treasury Committee
Summary
The Chief Secretary to the Treasury informs the Treasury Committee that HM Treasury will no longer produce annual reports under Section 41 of the Tax Credits Act 2002, which required reviewing whether tax credits retained their value. This follows the closure of tax credits to new awards and the ending of all existing awards in April 2025, making such reviews no longer necessary.
Key findings
- Tax credits closed to new awards and all existing awards ended in April 2025
- Section 41 of the Tax Credits Act 2002 required HM Treasury to review annually whether tax credits retained their value and report to Parliament
- With no active tax credits remaining, HM Treasury considers annual value-retention reviews under Section 41 no longer necessary
- Parliament should no longer expect to receive Section 41 reports in future years
Tone
ProceduralTopics
tax-creditspublic-financeparliamentary-reporting
Key actors
Lucy Rigby KC MP, Dame Meg Hillier MP, Debbie Abrahams MP, HM Treasury
Notable line
“… as tax credits closed to new awards and all existing awards ended in April 2025, there is no longer a need to review the value of tax credits …”
Key Quotes
“… as tax credits closed to new awards and all existing awards ended in April 2025, there is no longer a need to review the value of tax credits, as would usually be done under Section”
Source · parliament.uk record ↗