Part 1Charges, rates, allowances, etc
Income tax
4Reduction of personal allowance for those with income exceeding £100,000
1
In section 35 of ITA 2007 (personal allowances for those aged under 65), the existing provision becomes subsection (1) of that section; and after that subsection insert—
2
For an individual whose adjusted net income exceeds £100,000, the allowance under subsection (1) is reduced by one-half of the excess.
3
If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1.
4
For the meaning of “adjusted net income” see section 58.
2
In sections 36(2)(b) and 37(2)(b) of ITA 2007 (limit on reduction of personal allowances for those aged 65 to 74 or 75 and over), for “the amount of a personal allowance under section 35” substitute “
the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year
”
.
3
In section 57(1)(a) and (3)(a) of ITA 2007 (indexation of allowances), for “35” substitute “
35(1)
”
.
4
The amendments made by subsections (1) and (2) have effect for the tax year 2010-11 and subsequent tax years.
5
The amendment made by subsection (3) has effect for finding allowances for the tax year 2011-12 and subsequent tax years.