SCHEDULES
SCHEDULE 1Abolition of starting and savings rates and creation of starting rate for savings
Part 1Amendments of ITA 2007
11
1
Section 21 (indexation of starting and basic rate limits) is amended as follows.
2
Omit subsection (2).
3
After subsection (3) insert—
3A
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 retail 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
In subsection (4), for “(2) and (3)” substitute “
(3) and (3A)
”
.
5
In subsection (5)—
a
for “section 20” substitute “
sections 10 and 12
”
,
b
for “(2) and (3)” substitute “
(3) and (3A)
”
, and
c
for “starting rate limit and the basic rate limit” substitute “
basic rate limit and starting rate limit for savings
”
.
6
Accordingly, in the heading, for “starting rate limit and the basic rate limit” substitute “
basic rate limit and starting rate limit for savings
”
.