Part IIIU.K. Income Tax, Corporation Tax and Capital Gains Tax

Income tax reductionsU.K.

31 Restriction of MCA to those reaching 65 before 2000-01.U.K.

(1)Section 257A of the Taxes Act 1988 (income tax reduction for married couples) shall be amended as follows.

(2)Subsection (1) (reduction where neither spouse is aged 65 or over) shall cease to have effect.

(3)In subsection (2) (reduction where either spouse is aged 65 or over)—

(a)for “is at any time within that year of the age of 65 or upwards” there shall be substituted “ was born before 6th April 1935 ”;

(b)the words from “(instead of” to the end shall be omitted.

(4)In subsection (3) (reduction where either spouse is aged 75 or over)—

(a)after “either of them” there shall be inserted “ (a) ”;

(b)after “75 or upwards,” there shall be inserted “and

(b)was born before 6th April 1935,”;

(c)the words “(1) or” shall be omitted.

(5)In subsection (4) (rule where person dies in year of assessment)—

(a)for “subsections (2) and (3)” there shall be substituted “ subsection (3) ”;

(b)for “a specified age” there shall be substituted “ the age of 75 ”.

(6)In subsection (5) (tapering of reduction where claimant’s total income exceeds specified amount), the words from “(but not” to the end shall be omitted.

(7)After that subsection there shall be inserted the following subsection—

“(5A)The amounts specified in subsections (2) and (3) above shall not by virtue of subsection (5) above be treated as reduced below £1,970.”

(8)In subsection (6) (rule where claimant marries in year of assessment, etc.), for “subsections (1) to (3)” there shall be substituted “ subsections (2) and (3) ”.

F1(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)Subsections (2) to (5) and (8) above have effect for the year 2000-01 and subsequent years of assessment.

(11)Subject to section 32(5) below, subsections (6) and (7) above have effect for the year 1999-00 and subsequent years of assessment.

F2(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments