PART 1Income tax, corporation tax and capital gains tax
CHAPTER 1Charge, rates etc
Income tax
5Personal allowance from 2016
1
The amount specified in section 35(1) of ITA 2007 (personal allowance for those born after 5 April 1938) is replaced—
a
for the tax year 2016-17, with “£10,800”, and
b
for the tax year 2017-18, with “£11,000”.
2
Accordingly, for those tax years, 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.
3
In section 34(1)(a) of that Act, for “sections 35 and 37 deal” substitute “section 35 deals”.
4
In section 35 of that Act (personal allowance for those born after 5 April 1938)—
a
for paragraphs (a) and (b) substitute “meets the requirements of section 56 (residence etc).”, and
b
for the heading substitute “Personal allowance”.
5
Omit section 37 of that Act (personal allowance for those born before 6 April 1938).
6
In section 45(4) of that Act (marriages before 5 December 2005), for paragraphs (a) and (b) substitute “half the excess”.
7
In section 46(4) of that Act (marriages and civil partnerships on or after 5 December 2005), for paragraphs (a) and (b) substitute “half the excess”.
8
In section 55B of that Act (transferable tax allowance for married couples and civil partners: tax reduction: entitlement), in subsection (6) omit “or 37”.
9
In section 55C of that Act (election to reduce personal allowance), in subsections (1)(b) and (2), omit “or 37”.
10
In section 57 of that Act (indexation of allowances)—
a
in subsection (1)(a), for the words following “35(1)” substitute “(personal allowance)”,
b
in subsection (1)(h), omit “37(2),”, and
c
in subsection (4), omit “37(2),”.
11
The amendments made by subsections (3) to (10) have effect for the tax year 2016-17 and subsequent tax years.