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).