PART 1Income tax, corporation tax and capital gains tax
CHAPTER 1Income tax and corporation tax charges and rate bands
Income tax
1Charge for 2012-13 and rates for 2012-13 and subsequent tax years
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.