Part 1Direct and indirect taxes

Income tax charge and rates

1Income tax charge for tax year 2017-18

Income tax is charged for the tax year 2017-18.

2Main rates of income tax for tax year 2017-18

For the tax year 2017-18 the main rates of income tax are as follows—

a

the basic rate is 20%;

b

the higher rate is 40%;

c

the additional rate is 45%.

3Default and savings rates of income tax for tax year 2017-18

1

For the tax year 2017-18 the default rates of income tax are as follows—

a

the default basic rate is 20%;

b

the default higher rate is 40%;

c

the default additional rate is 45%.

2

For the tax year 2017-18 the savings rates of income tax are as follows—

a

the savings basic rate is 20%;

b

the savings higher rate is 40%;

c

the savings additional rate is 45%.

4Starting rate limit for savings for tax year 2017-18

1

For the amount specified in section 12(3) of ITA 2007 (starting rate for savings) substitute “£5000”.

2

The amendment made by subsection (1) has effect in relation to the tax year 2017-18 and subsequent tax years.

3

Section 21 of ITA 2007 (indexation), so far as relating to the starting rate limit for savings, does not apply in relation to the tax year 2017-18 (but this section does not override that section for subsequent tax years).