SCHEDULES

SCHEDULE 19Reduction of basic rate of income tax: transitional relief for gift aid charities

The “notional basic rate”

3

1

The “notional basic rate” for a transitional tax year is calculated by adding together—

a

the actual basic rate of income tax for that year, and

b

the transitional supplement for that year.

2

But if the rate calculated for a transitional tax year by adding those two things together is more than 22%, the notional basic rate for that year is 22%.

3

The “transitional supplement” for each transitional tax year is 2%.

4

Section 998 of ITA 2007 applies to the grossing up of an amount by reference to a notional basic rate as if the notional basic rate were an actual rate of tax.