- Latest available (Revised)
- Point in Time (06/04/2018)
- Original (As enacted)
Version Superseded: 07/02/2019
Point in time view as at 06/04/2018. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
There are currently no known outstanding effects for the Income Tax Act 2007, Section 55B.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)An individual is entitled to a tax reduction for a tax year of the appropriate percentage of the transferable amount if the conditions in subsection (2) are met.
(2)The conditions are that—
[F2(a)the individual is the gaining party (see section 55C(1)(a)) in the case of an election under section 55C which is in force for the tax year,]
(b)the individual is not, for the tax year, liable to tax at a rate other than the basic rate, [F3the default basic rate, the savings basic rate,] [F4the dividend nil rate,] [F5the Scottish basic rate,] [F6a Scottish rate below the Scottish basic rate, the Scottish intermediate rate,] the dividend ordinary rate [F7, the savings nil rate] or the starting rate for savings,
[F8(ba)if for the tax year the individual is liable to tax at the dividend nil rate, the individual would for that year neither be liable to tax at the dividend upper rate, nor be liable to tax at the dividend additional rate, if section 13A (dividend nil rate) were omitted,]
(c)the individual meets the requirements of section 56 (residence) for the tax year, and
(d)neither the individual nor the [F9relinquishing] spouse or civil partner makes a claim for the tax year under section 45 (married couple's allowance: marriages before 5 December 2005) or section 46 (married couple's allowance: marriages and civil partnerships on or after 5 December 2005).
(3)“The appropriate percentage” is the basic rate [F10or default basic rate] [F11or, in the case of a Scottish taxpayer, the Scottish basic rate] at which the individual would be charged to income tax for the tax year to which the reduction relates.
(4)“The transferable amount”—
(a)for the tax year 2015-16, is [F12£1,060], and
(b)for the tax year 2016-17 and subsequent tax years, is 10% of the amount of personal allowance specified in section 35(1) for the tax year to which the reduction relates.
(5)If the transferable amount calculated in accordance with subsection (4)(b) would otherwise not be a multiple of £10, it is to be rounded up to the nearest amount which is a multiple of £10.
[F13(5A)In this section “the relinquishing spouse or civil partner”, in relation to an election under section 55C, means the individual mentioned in section 55C(1)(a) by whom, or by whose personal representatives, the election is made.]
(6)If an individual is entitled to a tax reduction under subsection (1) [F14by reference to an election under section 55C], the personal allowance to which the [F15relinquishing] spouse or civil partner is entitled under section 35 F16... is reduced for the tax year by the transferable amount.
(7)If an individual who is entitled to a tax reduction for a tax year under subsection (1) dies during that tax year, subsection (6) is to be ignored (but this does not affect the individual's entitlement to the tax reduction).]
Textual Amendments
F1Pt. 3 Ch. 3A inserted (with effect in accordance with s. 11(12) of the amending Act) by Finance Act 2014 (c. 26), s. 11(2)
F2S. 55B(2)(a) substituted (retrospective and with effect in accordance with s. 6(12)(b)(c) of the amending Act) by Finance Act 2018 (c. 3), s. 6(3)(a)(12)(a)
F3Words in s. 55B(2)(b) inserted (30.11.2016) (with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(15)(a)(24); S.I. 2016/1161, regs. 2, 3
F4Words in s. 55B(2)(b) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(6)(a)(10)
F5Words in s. 55B(2)(b) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Scottish Rate of Income Tax (Consequential Amendments) Order 2015 (S.I. 2015/1810), arts. 1(1), 14(3)(a)
F6Words in s. 55B(2)(b) inserted (6.4.2018) by The Scottish Rates of Income Tax (Consequential Amendments) Order 2018 (S.I. 2018/459), arts. 1(2), 6(2)
F7Words in s. 55B(2)(b) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(8)(17)
F8S. 55B(2)(ba) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 5(6)(b)(10)
F9Word in s. 55B(2)(d) substituted (retrospective and with effect in accordance with s. 6(12)(b)(c) of the amending Act) by Finance Act 2018 (c. 3), s. 6(3)(b)(12)(a)
F10Words in s. 55B(3) inserted (30.11.2016) (with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(15)(b)(24); S.I. 2016/1161, regs. 2, 3
F11Words in s. 55B(3) inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Scottish Rate of Income Tax (Consequential Amendments) Order 2015 (S.I. 2015/1810), arts. 1(1), 14(3)(b)
F12 Sum in s. 55B(4)(a) substituted (with effect in accordance with s. 3(5) of the amending Act) by Finance Act 2015 (c. 11), s. 3(4)
F13S. 55B(5A) inserted (retrospective and with effect in accordance with s. 6(12)(b)(c) of the amending Act) by Finance Act 2018 (c. 3), s. 6(4)(12)(a)
F14Words in s. 55B(6) inserted (retrospective and with effect in accordance with s. 6(12)(b)(c) of the amending Act) by Finance Act 2018 (c. 3), s. 6(5)(a)(12)(a)
F15Word in s. 55B(6) substituted (retrospective and with effect in accordance with s. 6(12)(b)(c) of the amending Act) by Finance Act 2018 (c. 3), s. 6(5)(b)(12)(a)
F16Words in s. 55B(6) omitted (with effect in accordance with s. 5(11) of the amending Act) by virtue of Finance Act 2015 (c. 11), s. 5(8)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: