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Income and Corporation Taxes Act 1988

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Version Superseded: 29/04/1996

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Point in time view as at 27/07/1993. This version of this provision has been superseded. Help about Status

Changes to legislation:

Income and Corporation Taxes Act 1988, Section 1 is up to date with all changes known to be in force on or before 15 November 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

1 The charge to income tax.U.K.

(1)M1 Income tax shall be charged in accordance with the provisions of the Income Tax Acts in respect of all property, profits or gains respectively described or comprised in the Schedules, A,BF1, C, D, E and F, set out in sections 15 to 20 or which in accordance with the Income Tax Acts are to be brought into charge to tax under any of those Schedules or otherwise.

(2)M2 Where any Act enacts that income tax shall be charged for any year, income tax shall be charged for that year—

[F2(aa)in respect of so much of an individual’s total income as does not exceed £2,000, at such rate as Parliament may determine to be the lower rate for that year;]

(a)in respect of any income which does not fall within [F3paragraph (aa) above or] paragraph (b) below, at such rate as Parliament may determine to be the basic rate for that year;

[F4(b)in respect of so much of an individual’s total income as exceeds [F5£20,700] at such higher rate as Parliament may determine]

but this subsection has effect subject to any provision of the Income Tax Acts providing for income tax to be charged at a different rate in certain cases.

[F6(2A)The amount up to which an individual’s income is by virtue of subsection (2) above chargeable for any year at the lower rate shall be known as the lower rate limit.]

(3)M3 The amount up to which an individual’s income is by virtue of subsection (2) above chargeable for any year at the [F7lower rate or the] basic rate shall be known as the basic rate limit,and the parts of income in excess of the basic rate limit which are specified in paragraph (b) of that subsection shall be known respectively as the first, second, third, fourth and fifth higher rate bandsF8.

(4)M4 If the retail prices index for the month of [F9September] preceding a year of assessment is higher than it was for the previous [F9September], then, unless Parliament otherwise determines, subsection (2) above shall apply for that year as if for [F10each of the amounts specified] in that subsection as it applied for the previous year (whether by virtue of this subsection 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, if the result is not a multiple of £100, rounding it up to the nearest amount which is such a multiple.

F11(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)The Treasury shall before each year of assessment make an order specifying the [F12amounts] which by virtue of subsection (4) above will be treated as specified for that year in subsection (2) above.

[F13(6A)Where income tax at the basic rate has been borne on income chargeable at the lower rate any necessary repayment of tax shall be made on the making of a claim.]

(7)Part VII contains general provisions relating to the taxation of income of individuals.

Textual Amendments

F1Repealed by 1988(F) s. 148 and Sch. 14 Part V from 6 April 1988

F2S. 1(2)(aa) inserted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by Finance Act 1992 (c. 20), s. 9(2)(10)(11).

F3Words in s. 1(2)(a) inserted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by Finance Act 1992 (c. 20), s. 9(3)(10)(11).

F41988(F) s.24(2)(a)for 1988-89.Previously

“(b) in respect of so much of an individual's total income as exceeds £17,900, at such higher rates respectively as Parliament may determine in relation to the first £2,500, the next £5,000, the next £7,900, the next £7,900 and the remainder;”.

F51990 s.17(1)(b)for 1990-91. (Art. 2(2)of S.I. 1990 No.677 (in Part III Vol.5)was not operated.)

F6S. 1(2A) inserted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by Finance Act 1992 (c. 20), s. 9(4)(10)(11).

F7Words in s. 1(3) inserted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by Finance Act 1992 (c. 20), s. 9(5)(10)(11).

F8Repealed by 1988(F) s. 148 and Sch. 14 Part IV for 1988-89 and subsequent years

F9Words in s. 1(4) substituted (27.7.1993 with effect for year 1994-95 and subsequent years of assessment) by 1993 c. 34, s. 107(2)(a)(8)

F10Words in s. 1(4) substituted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by virtue of Finance Act 1992 (c. 20), s. 9(6)(10)(11).

F11S. 1(5) repealed (27.7.1993 with effect for the year 1994-95 and subsequent years of assessment) by 1993 c. 34, ss. 107(2)(b)(8), 213, Sch. 23, Pt.III

F12Word in s. 1(6) substituted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by virtue of Finance Act 1992 (c. 20), s. 9(7)(10)(11).

F13S. 1(6A) inserted (16.3.1992 with application for the year 1992-93 and subsequent years of assessment) by Finance Act 1992 (c. 20), s. 9(8)(10)(11).

Modifications etc. (not altering text)

C1 See s.686—income of trustees chargeable at higher rate.

C2S. 1(2) amended (1991-92) by S.I. 1991/732, art. 2(2)

S. 1(2) amended (1992-93) by 1992 c. 20, s. 10(2)(b) (in place of S.I. 1992/622, art. 2(2))

S. 1(2) amended (1993-94) by 1993 c. 34, s. 51(2) (in place of S.I. 1993/755, art. 2(2))

S. 1(2) amended (1994-95) by 1994 c. 9, s. 75(2) (in place of S.I. 1993/2948, art. 2(2))

S. 1(2)(b) amended (1995-96) by S.I. 1994/3012, art. 2(2)(b)

S. 1(2)(aa) amended (1995-96) by 1995 c. 4, s. 35(2) (in place of S.I. 1994/3012, art. 2(2)(a))

S. 1(2) amended (1996-97) by 1996 c. 8, s. 72(2) (in place of S.I. 1995/3031, art. 2(2))

S. 1(2)(b) amended (1997-98) by S.I. 1996/2952, art. 2(2)(b)

S. 1(2)(aa) amended (1997-98) by 1997 c. 16, s. 54(2) (in place of S.I. 1996/2952, art. 2(2)(a))

S. 1(2) amended (1998-99) by S.I. 1998/755, art. 2(2)

S. 1(2)(b) amended (1999-00) by S.I. 1999/597, art. 2(2)(b) (the effect of art. 2(2)(a) being superseded by 1999 c. 16, s. 22(1) which substitutes s. 1(2)(aa))

S. 1(2) amended (2000-01) by S.I. 2000/806, art. 2(2)

S. 1(2)(b) amended (2001-02) by S.I. 2001/638, art. 2(2)(b)

S. 1(2)(aa) amended (2001-02) by 2001 c. 9, s. 51(1) (in place of S.I. 2001/638, art. 2(2)(a))

S. 1(2) amended (2002-03) by S.I. 2002/707, art. 2(2)

S. 1(2) amended (2003-04) by S.I. 2003/840, art. 2

S. 1(2) amended (2004-05) by S.I. 2004/772, art. 2

S. 1(2) amended (2005-06) by S.I. 2005/716, art. 2

S. 1(2) amended (2006-07) by S.I. 2006/872, art. 2

S. 1(2) amended (2007-08) by S.I. 2007/943, art. 2

C3 See 1990 s.17(1)—basic rate 25%and higher rate 40%for 1990-91.

C4 For earlier years see Table C Vol.1.

C5 See—1988(F) s.24(2)—indexation not to apply for 1988-89.1990 s.17(1)—indexation not to apply for 1990-91.

C6S. 1(4) excluded for the year 1991-92 by Finance Act 1991 (c. 31, SIF 63:1), s. 21(2)

S. 1(4) excluded for the year 1992-93 by Finance Act 1992 (c. 20), s. 10(2)(a)(5).

S. 1(4) excluded for the year 1993-94 by Finance Act 1993 (c. 34), s. 51(2)

S. 1(4) excluded for the year 1994-95 by Finance Act 1994 (c. 9), s. 75(2)

S. 1(4) excluded for the year 1995-96 by Finance Act 1995 (c. 4), s. 35(2)

S. 1(4) excluded for the year 1996-97 by Finance Act 1996 (c. 8), s. 72(2)

S. 1(4) excluded for the year 1999-00 by Finance Act 1999 (c. 16), s. 22(5)

S. 1(4) excluded for the year 2001-02 by Finance Act 2001 (c. 9), s. 51(2)

C7 See S.I. 1989 No. 467 in Part III Vol.5.

Marginal Citations

M1Source—1970 s.1

M2Source—1970 s.1; 1971 s.32(1); 1980 s.24(2); 1987 s.20(1)

M3Source‐1980 s.24(3); 1984 Sch.7 3(5)

M4Source—1980 s.24(4), (7), (9)

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