Income Tax Act 2007 (c. 3)

Part 2 U.K. Basic provisions

Chapter 2 U.K. Rates at which income tax is charged

The rates U.K.

6 F1 The ... basic rate[F2 , higher rate and additional rate] U.K.

(1) The main rates at which income tax is charged are—

F3 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the basic rate, F4 ...

(c) the higher rate[F5 , and

(d) the additional rate.]

(2) The F6 ... basic rate[F7 , higher rate and additional rate] for a tax year are the rates determined as such by Parliament for the tax year.

F8 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (2B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (2C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For other rates at which income tax is charged see—

[F9 (za) section 6A (Scottish basic, higher and additional rates),]

[F10 (a) section 7 (starting rate for savings [F11 and savings nil rate]),]

(b) section 8 ([F12 dividend nil rate,] dividend ordinary rate[F13 , dividend upper rate and dividend additional rate]), and

(c) section 9 (trust rate and dividend trust rate).

Textual Amendments

F1 Words in s. 6 heading omitted (21.7.2008 with effect in accordance with s. 5(6) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 5(5)

F2 Words in s. 6 heading substituted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 2(3)

F3 S. 6(1)(a) omitted (21.7.2008 with effect in accordance with s. 5(6) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 5(2)

F4 Word in s. 6(1)(b) omitted (with effect in accordance with s. 6(6) of the amending Act) by virtue of Finance Act 2009 (c. 10), s. 6(2)

F5 S. 6(1)(d) and preceding word inserted (with effect in accordance with s. 6(6) of the amending Act) by Finance Act 2009 (c. 10), s. 6(2)

F6 Words in s. 6(2) omitted (21.7.2008 with effect in accordance with s. 5(6) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 5(3)

F7 Words in s. 6(2) substituted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 2(2)

F8 S. 6(2A)-(2C) omitted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 38 para. 2(a)

F9 S. 6(3)(za) inserted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by Finance Act 2014 (c. 26), Sch. 38 para. 2(b)

F10 S. 6(3)(a) substituted (21.7.2008 with effect in accordance with s. 5(6) of the amending Act) by Finance Act 2008 (c. 9), s. 5(4)

F11 Words in s. 6(3)(a) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(2)(17)

F12 Words in s. 6(3)(b) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(2)(10)

F13 Words in s. 6(3)(b) substituted (with effect in accordance with s. 6(6) of the amending Act) by Finance Act 2009 (c. 10), s. 6(3)

[F14 6A The Scottish basic, higher and additional rates U.K.

(1) The Scottish basic rate, the Scottish higher rate and the Scottish additional rate for a tax year are calculated as follows.

• Step 1 Take the basic rate, higher rate or additional rate.

• Step 2 Deduct 10 percentage points.

• Step 3 Add the Scottish rate (if any) set by the Scottish Parliament for that year.

(2) For provision about the setting of the Scottish rate, see Chapter 2 of Part 4A of the Scotland Act 1998.]

Textual Amendments

F14 S. 6A inserted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by Finance Act 2014 (c. 26), Sch. 38 para. 3

7 The starting rate for savings [F15 and savings nil rate] U.K.

[F16 (1)] The starting rate for savings is 0%.

[F17 (2) The savings nil rate is 0%.]

Textual Amendments

F15 Words in s. 7 heading inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(3)(c)(17)

F16 S. 7 renumbered as s. 7(1) (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(3)(a)(17)

F17 S. 7(2) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(3)(b)(17)

8 The [F18 dividend nil rate,] dividend ordinary rate[F19 , dividend upper rate and dividend additional rate] U.K.

[F20 (A1) The dividend nil rate is 0%.]

(1) The dividend ordinary rate is [F21 7.5%].

(2) The dividend upper rate is 32.5%.

[F22 (3) The dividend additional rate is [F23 38.1%].]

Textual Amendments

F18 Words in s. 8 heading inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(3)(a)(10)

F19 Words in s. 8 heading substituted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 3(3)

F20 S. 8(A1) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(3)(b)(10)

F21 Word in s. 8(1) substituted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(3)(c)(10)

F22 S. 8(3) inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 3(2)

F23 Word in s. 8(3) substituted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(3)(d)(10)

9 The trust rate and dividend trust rate U.K.

(1) The trust rate is [F24 45%].

(2) The dividend trust rate is [F25 38.1%].

Textual Amendments

F24 Words in s. 9(1) substituted (17.7.2012) (with effect in accordance with s. 1(6) of the amending Act) by Finance Act 2012 (c. 14), s. 1(3)(b)

F25 Word in s. 9(2) substituted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(4)(10)