PART 1Income tax, corporation tax and capital gains tax
CHAPTER 1Charge, rates etc
Income tax
1Charge, rates, basic rate limit and personal allowance for 2014-15
1
Income tax is charged for the tax year 2014-15.
2
For that tax year—
a
the basic rate is 20%,
b
the higher rate is 40%, and
c
the additional rate is 45%.
3
For that tax year—
a
the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “
£31,865
”
, and
b
the amount specified in section 35(1) of that Act (personal allowance for those born after 5 April 1948) is replaced with “
£10,000
”
.
4
Accordingly for that tax year—
a
section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and
b
section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply.
2Basic rate limit for 2015-16 and personal allowances from 2015
1
For the tax year 2015-16—
a
the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “
£31,785
”
, and
b
the amount specified in section 35(1) (personal allowance) is replaced with F1“£10,600”
.
2
Accordingly, for that tax year—
a
section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and
b
section 57 (indexation of allowances), so far as relating to the amount specified in section 35(1), does not apply.
3
In section 34(1)(a) of that Act (introduction), omit “, 36”.
4
In section 35 of that Act (personal allowance for those born after 5 April 1948)—
a
in subsection (1)(a), for “1948” substitute “
1938
”
, and
b
in the heading, for “1948” substitute “
1938
”
.
5
Omit section 36 of that Act (personal allowance for those born after 5 April 1938 but before 6 April 1948).
6
In section 45(4)(b) of that Act (marriages before 5 December 2005), omit “36(2) or”.
7
In section 46(4)(b) of that Act (marriages and civil partnerships on or after 5 December 2005), omit “36(2) or”.
8
In section 57 of that Act (indexation of allowances)—
a
in subsection (1)(a), for “1948” substitute “
1938
”
, F2...
F3aa
in subsection (1)(h), omit “36(2),”, and
b
in subsection (4) omit “36(2),”.
9
The amendments made by subsections (3) to (8) have effect for the tax year 2015-16 and subsequent tax years.
3The starting rate for savings and the savings rate limit
1
In section 7 of ITA 2007 (the starting rate for savings) for “10%” substitute “
0%
”
.
2
For the tax year 2015-16 the amount specified in section 12(3) of that Act (starting rate limit for savings) is replaced with “
£5,000
”
.
3
Accordingly section 21 of that Act (indexation of limits), so far as relating to the starting rate limit for savings, does not apply for that tax year.
F44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5
The amendments made by subsections (1) and (4) have effect for the tax year 2015-16 and subsequent tax years.
4Indexation of limits and allowances under ITA 2007
1
ITA 2007 is amended as follows.
2
In section 21 (indexation of the basic rate limit and starting rate limit for savings)—
a
in each of subsections (1), (3) and (3A), for “retail prices index” substitute “
consumer prices index
”
, and
b
after subsection (5) insert—
6
In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.
3
In section 57 (indexation of allowances)—
a
in each of subsections (2), (3) and (4), for “retail prices index” substitute “
consumer prices index
”
, and
b
after subsection (6) insert—
7
In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.
4
The amendments made by subsections (2) and (3) have effect for the tax year 2015-16 and subsequent tax years.