Part 2Basic provisions
Chapter 2Rates at which income tax is charged
Starting rate limit and basic rate limit
C1C2C3C4C5C6C7C8C9C10C11C1221Indexation of the F1basic rate limit and starting rate limit for savings
1
This section applies if the F10consumer prices index for the September before the start of a tax year is higher than it was for the previous September.
F22
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3
The basic rate limit for the tax year is the amount found as follows.
Step 1
Increase the basic rate limit for the previous tax year by the same percentage as the percentage increase in the F11consumer prices index.
Step 2
If the result of Step 1 is a multiple of £100, it is the basic rate limit for the tax year.
If the result of Step 1 is not a multiple of £100, round it up to the nearest amount which is a multiple of £100.
That amount is the basic rate limit for the tax year.
F33A
The starting rate limit for savings for the tax year is the amount found as follows.
Step 1
Increase the starting rate limit for savings for the previous tax year by the same percentage as the percentage increase in the F9consumer prices index.
Step 2
If the result of Step 1 is a multiple of £10, it is the starting rate limit for savings for the tax year.
If the result of Step 1 is not a multiple of £10, round it up to the nearest amount which is a multiple of £10.
That amount is the starting rate limit for savings for the tax year.
4
Subsections F4(3) and (3A) do not require a change to be made in the amounts deductible or repayable under PAYE regulations during the period beginning on 6 April and ending on 17 May in the tax year.
5
F86
In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.