(1)This section applies if the retail prices index for the September before the start of a tax year is higher than it was for the previous September.
F2(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)The basic rate limit for the tax year is the amount found as follows.
Step 1
Increase the basic rate limit for the previous tax year by the same percentage as the percentage increase in the retail prices index.
Step 2
If the result of Step 1 is a multiple of £100, it is the basic rate limit for the tax year.
If the result of Step 1 is not a multiple of £100, round it up to the nearest amount which is a multiple of £100.
That amount is the basic rate limit for the tax year.
[F3(3A)The starting rate limit for savings for the tax year is the amount found as follows.
Step 1
Increase the starting rate limit for savings for the previous tax year by the same percentage as the percentage increase in the retail prices index.
Step 2
If the result of Step 1 is a multiple of £10, it is the starting rate limit for savings for the tax year.
If the result of Step 1 is not a multiple of £10, round it up to the nearest amount which is a multiple of £10.
That amount is the starting rate limit for savings for the tax year.]
(4)Subsections [F4(3) and (3A)] do not require a change to be made in the amounts deductible or repayable under PAYE regulations during the period beginning on 6 April and ending on 17 May in the tax year.
(5)Before the start of the tax year the Treasury must make an order replacing the amounts specified in [F5sections 10 and 12] with the amounts which, as a result of subsections [F6(3) and (3A)] , are the [F7basic rate limit and starting rate limit for savings] for the tax year.
Textual Amendments
F1Words in s. 21 heading substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(6)
F2S. 21(2) omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 11(2)
F3S. 21(3A) inserted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(3)
F4Words in s. 21(4) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(4)
F5Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(a)
F6Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(b)
F7Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(c)
Modifications etc. (not altering text)
C1S. 21 excluded (21.7.2009) by Finance Act 2009 (c. 10), s. 2(2)
C2S. 21 excluded (19.7.2011) by Finance Act 2011 (c. 11), s. 2(2)
C3S. 21 excluded (17.7.2012) by Finance Act 2012 (c. 14), s. 2(2)