Tax rates and personal reliefsU.K.
23 Charge and basic rate of income tax for 1988-89.U.K.
Income tax shall be charged for the year 1988-89, and the basic rate of tax shall be 25 per cent.
24 Higher and additional rates of income tax.U.K.
(1)The rate at which income tax is charged for the year 1988-89 in respect of so much of an individual’s total income as exceeds £19,300 shall be 40 per cent.
(2)In accordance with subsection (1) above, section 1 of the Taxes Act 1988 shall be amended as follows—
(a)for paragraph (b) of subsection (2) there shall be substituted—
“(b)in respect of so much of an individual’s total income as exceeds £19,300, at such higher rate as Parliament may determine”
(b)in subsection (3) the words “and the” onwards shall cease to have effect;
(c)in subsection (4) for the words “each of the amounts” there shall be substituted the words “ the amount ”;
(d)in subsection (6) for the word “amounts” there shall be substituted the word “ amount ”;
and section 1(4) (indexation) shall not apply for the year 1988-89.
(3)In section 694 of the Taxes Act 1988 (which imposes a charge on trustees of maintenance funds for historic buildings in certain circumstances), in subsection (2), the words “at the rate of 30 per cent.” shall cease to have effect; and after that subsection there shall be inserted—
“(2A)The rate at which tax is charged under this section shall be equivalent to the higher rate of income tax for the year of assessment during which the charge arises, reduced by the sum of the basic and additional rates for that year.”
F1(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1s. 24(4) repealed (19.3.1997 with effect in relation to the year 1997-98 and subsequent years of assessment) by 1997 c. 16, s. 113, Sch. 18 Pt. VI(1) note
25 Personal reliefs.U.K.
(1)In section 257 of the Taxes Act 1988 (personal reliefs)—
(a)in subsection (1)(a) (married allowance) for “£3,795” there shall be substituted “ £4,095 ”;
(b)in subsections (1)(b) (single allowance) and (6) (wife’s earned income relief) for “£2,425” there shall be substituted “ £2,605 ”;
(c)in subsection (2)(a) (married allowance: age 65 to 79) for “£4,675” there shall be substituted “ £5,035 ”;
(d)in subsection (2)(b) (single allowance: age 65 to 79) for “£2,960” there shall be substituted “ £3,180 ”;
(e)in subsection (3)(a) (married allowance: age 80 and over) for “£4,845” there shall be substituted “ £5,205 ”;
(f)in subsection (3)(b) (single allowance: age 80 and over) for “£3,070” there shall be substituted “ £3,310 ”;
(g)in subsection (5) (income limit for age allowance) for “£9,800” there shall be substituted “ £10,600 ”.
(2)Section 257(9) of that Act (indexation) shall not apply for the year 1988-89.
(3)Sections 258, 263 and 264 of that Act (housekeeper allowance, dependent relative allowance and son’s or daughter’s services allowance) shall not have effect for the year 1988-89 or any subsequent year of assessment.
26 Charge and rate of corporation tax for financial year 1988.U.K.
Corporation tax shall be charged for the financial year 1988 at the rate of 35 per cent.
27 Corporation tax: small companies.U.K.
(1)For the financial year 1988 the small companies rate shall be 25 per cent.
(2)For the financial year 1988 the fraction mentioned in section 13(2) of the Taxes Act 1988, and in section 95(2) of the M1Finance Act 1972, (marginal relief for small companies) shall be one fortieth.
Marginal Citations
F228. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.
Textual Amendments
F2S. 28 repealed (6.8.1999 with effect as mentioned in Sch. 29 Pt. VIII(21) notes 4, 5 of the amending Act) by 1995 c. 4, s. 162, Sch. 20 Pt. VIII(21); S.I. 1999/2156, art. 2(b)
29 Life assurance premium relief.U.K.
(1)In sections 266(5)(a) and 274(3)(a) of the Taxes Act 1988, and in paragraph 3(3)(a) of Schedule 14 to that Act, (rate of relief on premiums on life policies etc.) for the words “15 per cent.” wherever they occur there shall be substituted the words “ 12.5 per cent. ”.
(2)This section shall have effect on and after 6th April 1989.
F330. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.
Textual Amendments
F3S. 30 repealed (27.7.1999 with effect for the year 2000-01 and subsequent years of assessment) by 1999 c. 16, s. 139, Sch. 20 Pt. III(4), note
31 Non-residents’ personal reliefs.U.K.
(1)For the year 1990-91 and subsequent years of assessment section 278 of the Taxes Act 1988 (which with certain exceptions denies relief under Chapter I of Part VII to non-residents) shall have effect with the following amendments.
(2)In subsection (2)(e) (exception for widows of Crown servants) after the word “husband” there shall be inserted the words “ , or a widower whose late wife, ”.
(3)After subsection (2) there shall be inserted—
“(2A)Notwithstanding subsection (2) above, no relief shall be given under section 257D in a case where the husband is not resident in the United Kingdom.”
(4)Subsections (3) to (7) shall be omitted.