Part 1Charges, rates, allowances, etc
Income tax
1Charge and main rates for 2009-10
1
Income tax is charged for the tax year 2009-10.
2
For that tax year—
a
the basic rate is 20%, and
b
the higher rate is 40%.
2Basic rate limit for 2009-10
1
For the tax year 2009-10 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “£37,400”.
2
Accordingly, section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.
3Personal allowance for 2009-10 for those aged under 65
1
For the tax year 2009-10 the amount specified in—
a
section 35 of ITA 2007, F2...
F2b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(personal allowance for those aged under 65) is replaced with “£6,475”.
2
Accordingly—
a
section 57 of ITA 2007, so far as relating to the amount specified in section 35 of that Act, F1...
F1b
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(indexation) do not apply for the tax year 2009-10.
4Reduction of personal allowance for those with income exceeding £100,000
1
In section 35 of ITA 2007 (personal allowances for those aged under 65), the existing provision becomes subsection (1) of that section; and after that subsection insert—
2
For an individual whose adjusted net income exceeds £100,000, the allowance under subsection (1) is reduced by one-half of the excess.
3
If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1.
4
For the meaning of “adjusted net income” see section 58.
2
In sections 36(2)(b) and 37(2)(b) of ITA 2007 (limit on reduction of personal allowances for those aged 65 to 74 or 75 and over), for “the amount of a personal allowance under section 35” substitute “
the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year
”
.
3
In section 57(1)(a) and (3)(a) of ITA 2007 (indexation of allowances), for “35” substitute “
35(1)
”
.
4
The amendments made by subsections (1) and (2) have effect for the tax year 2010-11 and subsequent tax years.
5
The amendment made by subsection (3) has effect for finding allowances for the tax year 2011-12 and subsequent tax years.
5Abolition of personal reliefs for non-residents
Schedule 1 contains provision abolishing personal reliefs for non-residents.
6Additional rate, dividend additional rate, trust rates and pension tax rates
1
Section 6 of ITA 2007 (rates of income tax) is amended as follows.
2
In subsection (1), omit the “and” at the end of paragraph (b) and insert at the end
, and
d
the additional rate.
3
In subsection (3)(b), for “and dividend upper rate” substitute “
, dividend upper rate and dividend additional rate
”
.
4
In section 9 (trust rate and dividend trust rate)—
a
in subsection (1), for “40%” substitute “
50%
”
, and
b
in subsection (2), for “32.5%” substitute “
42.5%
”
.
5
Schedule 2 contains provision supplementing this section (including provision about rates under Part 4 of FA 2004).
6
The amendments made by this section have effect for the tax year 2010-11 and subsequent tax years.