PART 1Income tax, corporation tax and capital gains tax

CHAPTER 1Charge, rates etc

Income tax

1Charge, rates, basic rate limit and personal allowance for 2014-15

1

Income tax is charged for the tax year 2014-15.

2

For that tax year—

a

the basic rate is 20%,

b

the higher rate is 40%, and

c

the additional rate is 45%.

3

For that tax year—

a

the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £31,865 ”, and

b

the amount specified in section 35(1) of that Act (personal allowance for those born after 5 April 1948) is replaced with “ £10,000 ”.

4

Accordingly for that tax year—

a

section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and

b

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.