Part III Income Tax, Corporation Tax and Capital Gains Tax

Income tax: charge, rates and reliefs

35 Charge and rates of income tax for 1995-96.

1

Income tax shall be charged for the year 1995-96, and for that year—

a

the lower rate shall be 20 per cent.,

b

the basic rate shall be 25 per cent., and

c

the higher rate shall be 40 per cent.

2

For the year 1995-96 section 1(2) of the Taxes Act 1988 shall apply as if the amount specified in paragraph (aa) were £3,200 (the lower rate limit); and accordingly section 1(4) of that Act (indexation) so far as relating to that paragraph shall not apply for the year 1995-96.