Income and Corporation Taxes Act 1988

257C Indexation of amounts in sections 257 and 257A. U.K.

(1) If the retail prices index for the month of December preceding a year of assessment is higher than it was for the previous December, then, unless Parliament otherwise determines, sections 257 and 257A shall apply for that year as if for each amount specified in them as they applied for the previous year (whether by virtue of this section or otherwise) there were substituted an amount arrived at by increasing the amount for the previous year by the same percentage as the percentage increase in the retail prices index, and—

(a) if in the case of an amount specified in sections 257(5) and 257A(5) the result is not a multiple of £100, rounding it up to the nearest amount which is such a multiple;

(b) if in the case of any other amount the increase is not a multiple of £10, rounding the increase up to the nearest amount which is such a multiple.

(2) Subsection (1) above shall not require any change to be made in the amounts deductible or repayable under section 203 [F1 during the period beginning with 6th April and ending with 17th May in the year of assessment.]

(3) The Treasury shall in each year of assessment make an order specifying the amounts which by virtue of subsection (1) above will be treated as specified for the following year of assessment in sections 257 and 257A.

[F2 (4) This section shall have effect in relation to reliefs for the year 1990-91 (as well as for later years);and for that purpose it shall be assumed that sections 257and 257Aapplied for the year 1989-90as they apply, apart from this section, for the year 1990-91.]

Textual Amendments

F1 1990 s.17(2)for 1990-91and subsequent years. Previously

“between the beginning of a year of assessment and 5th May in that year.”.

F2 Repealed by 1990 s.132and Sch.19 Part IV.

Modifications etc. (not altering text)

C1 S. 257C(1) excluded (for the year 1991-92) by Finance Act 1991 (c. 31, SIF 63:1), s. 22(1)

S. 257C(1) excluded (16.3.1992) by Finance Act 1992 (c. 20), s. 10(3)(5).

C2 See S.I. 1990 No.677in Part III Vol.5for 1990-91.