The Income Tax (Indexation) (No. 4) Order 2008

Indexation of personal allowance and married couple’s allowance for the tax year 2009-10

2.  For the tax year 2009-10 the amounts specified in the provisions mentioned in section 257C(1) (indexation of allowances)(1) are replaced as follows—

(a) the amount specified in section 256B (the minimum amount)(2) is replaced with “£2,670”;

(b) in section 257 (personal allowance)(3)—

(i) the amount specified in subsection (1) (personal allowance for those aged under 65) is replaced with “£6,345”,

(ii) the amount specified in subsection (2) (personal allowance for those aged 65 to 74) is replaced with “£9,490”,

(iii) the amount specified in subsection (3) (personal allowance for those aged 75 and over) is replaced with “£9,640”, and

(iv) the amount specified in subsection (5) (adjusted net income limit) is replaced with “£22,900”;

(c) in section 257A (married couple’s allowance: marriages before 5th December 2005)(4)—

(i) the amount specified in subsection (2) (married couple’s allowance: one spouse aged less than 75 and born before 6th April 1935) is replaced with “£6,865”,

(ii) the amount specified in subsection (3) (married couple’s allowance: one spouse aged 75 or over) is replaced with “£6,965”, and

(iii) the amount specified in subsection (5) (adjusted net income limit) is replaced with “£22,900”;

(d) in section 257AB (marriages and civil partnerships on or after 5th December 2005)(5)—

(i) the amount specified in subsection (2)(a) (married couple’s allowance: one spouse or civil partner aged 75 or over) is replaced with “£6,965”,

(ii) the amount specified in subsection (2)(b) (married couple’s allowance: one spouse or civil partner aged less than 75 and born before 6th April 1935) is replaced with “£6,865”, and

(iii) the amount specified in subsection (4) (adjusted net income limit) is replaced with “£22,900”.

(1)

Section 257C(1) was relevantly amended by section 107(3)(a) of the Finance Act 1993 (c. 34), paragraph 34(2) of Schedule 1 to the Income Tax Act 2007 and regulation 55(a) and (b) of S.I. 2005/3229.

(2)

Section 256B was inserted by paragraph 28 of Schedule 1 to the Income Tax Act 2007 and amended by article 2(2) of S.I. 2008/673.

(3)

In section 257, subsection (1) was relevantly amended by paragraph 29(2) of Schedule 1 to the Income Tax Act 2007 and section 2(1)(b) of the Finance Act 2008 (c.9); subsection (2) was relevantly amended by paragraph 13 of Schedule 20 to the Finance Act 1996 (c. 8), paragraph 29(3) of Schedule 1 to the Income Tax Act 2007 and section 3(1)(a) of the Finance Act 2008; subsection (3) was relevantly amended by section 33(4)(a) of the Finance Act 1989 (c. 26), paragraph 13 of Schedule 20 to the Finance Act 1996, paragraph 29(4) of Schedule 1 to the Income Tax Act 2007 and s3(1)(b) of the Finance Act 2008; and subsection (5) was relevantly amended by section 33(5)(b) of the Finance Act 1989, paragraph 29(5) of Schedule 1 to the Income Tax Act 2007 and article 2(3)(d) of S.I. 2008/673.

(4)

Sections 257 to 257F were substituted for section 257 by section 33 of the Finance Act 1988. In section 257A, subsection (2) was relevantly amended by section 77(2)(b) of the Finance Act 1994 (c. 9), paragraph 14(3) of Schedule 20 to the Finance Act 1996, section 31(3) of the Finance Act 1999 (c. 16), paragraph 30(2) of Schedule 1 to the Income Tax Act 2007, regulation 51(2) of S.I. 2005/3229 and article 2(4)(a) of S.I. 2008/673; subsection (3) was relevantly amended by section 33(8)(a) of the Finance Act 1989, section 77(2)(c) of the Finance Act 1994, paragraph 14(3) of Schedule 20 to the Finance Act 1996, section 31(4) of the Finance Act 1999, paragraph 30(2) of Schedule 1 to the Income Tax Act 2007, regulation 51(3) of S.I. 2005/3229 and article 2(4)(b) of S.I. 2008/673; and subsection (5) was relevantly amended by section 33(9)(b) of the Finance Act 1989, section 31(6) of the Finance Act 1999, paragraph 30(3) of Schedule 1 to the Income Tax Act 2007, and article 2(4)(c) of S.I. 2008/673.

(5)

Section 257AB was inserted by regulation 52 of S.I. 2005/3229; subsections (2) and (4) were relevantly amended by paragraph 31 of Schedule 1 to the Income Tax Act 2007 and article 2(5) of S.I. 2008/673.