PART 1Income tax, corporation tax and capital gains tax

CHAPTER 1Charge, rates etc

Income tax

3Personal allowances for 2015-16

(1)

Section 2 of FA 2014 (basic rate limit for 2015-16 and personal allowances from 2015) is amended as set out in subsections (2) and (3).

(2)

In subsection (1)(b) (amount specified for 2015-16 in section 35(1) of ITA 2007 (personal allowance for those born after 5 April 1938)), for “ “£10,500”” substitute “ “£10,600” ”.

(3)

In subsection (8) (amendments of section 57 of ITA 2007), omit the “and” at the end of paragraph (a) and after that paragraph insert—

“(aa)

in subsection (1)(h), omit “36(2),”, and”.

(4)

In section 55B(4)(a) of ITA 2007 (transferable tax allowance for married couples and civil partners: entitlement to tax reduction), for “£1,050” substitute “ £1,060 ”.

(5)

The amendments made by subsections (3) and (4) have effect for the tax year 2015-16 and subsequent tax years.