Part 1Charges, rates, allowances etc

Income tax

1Charge and main rates for 2011-12

1

Income tax is charged for the tax year 2011-12.

2

For that tax year—

a

the basic rate is 20%,

b

the higher rate is 40%, and

c

the additional rate is 50%.

2Basic rate limit for 2011-12

1

For the tax year 2011-12 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £35,000 ”.

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 2011-12 for those aged under 65

1

For the tax year 2011-12 the amount specified in section 35(1) of ITA 2007 (personal allowance for those aged under 65) is replaced with “ £ 7,475 ”.

2

Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply for that tax year.