Finance Act 2012

1 Charge for 2012-13 and rates for 2012-13 and subsequent tax years U.K.

(1) Income tax is charged for the tax year 2012-13, and for that tax year—

(a) the basic rate is 20%,

(b) the higher rate is 40%, and

(c) the additional rate is 50%.

(2) For the tax year 2013-14—

(a) the basic rate is 20%,

(b) the higher rate is 40%, and

(c) the additional rate is 45%.

(3) In Chapter 2 of Part 2 of ITA 2007 (rates at which income tax is charged)—

(a) in section 8(3) (dividend additional rate), for “42.5%” substitute “ 37.5% ”,

(b) in section 9(1) (trust rate), for “50%” substitute “ 45% ”, and

(c) in section 9(2) (dividend trust rate), for “42.5%” substitute “ 37.5% ”.

(4) In section 394 of ITEPA 2003 (charge on relevant benefits provided under employer-financed retirement benefits scheme), in subsection (4) for “50%” substitute “ 45% ”.

(5) In section 640 of ITTOIA 2005 (capital sums treated as income of the settlor: grossing-up of deemed income), in subsection (6)(b)—

(a) omit the “and” at the end of sub-paragraph (ii),

(b) in sub-paragraph (iii) for “or any subsequent tax year.” substitute “ , 2011-12 or 2012-13, and ”, and

(c) after that sub-paragraph insert—

“(iv) 45%, if the relevant year is the year 2013-14 or any subsequent tax year.”

(6) The amendments made by subsections (3) to (5) have effect for the tax year 2013-14 and subsequent tax years.