In section 7 of ITA 2007 (the starting rate for savings) for “10%” substitute “0%”.

For the tax year 2015-16 the amount specified in section 12(3) of that Act (starting rate limit for savings) is replaced with “£5,000”.

Accordingly section 21 of that Act (indexation of limits), so far as relating to the starting rate limit for savings, does not apply for that tax year.

In section 852 of that Act (power to make regulations disapplying duty to deduct sums representing income tax), in subsection (2)(a), after “made” insert “or is unlikely to be liable to pay any income tax on that person’s savings income for that tax year”.

The amendments made by subsections (1) and (4) have effect for the tax year 2015-16 and subsequent tax years.