1.This section sets the income tax personal allowance for 2016-17 and 2017-18 and removes the personal allowance for those born before 6 April 1938.
2.Subsection (1) sets the amount of the personal allowance for 2016-17 and 2017-18.
3.Subsection (2) disapplies the indexation provisions.
4.Subsection (4) removes the date of birth qualification for the personal allowance provided by section 35 of the Income Tax Act 2007.
5.Subsection (5) omits the personal allowance for those born before 6 April 1938.
6.Subsections (6) to (10) remove references to the personal allowance for those born before 6 April 1938.
7.Subsection (11) provides that the amendments made by subsections (3) to (10) have effect for the 2016-17 tax year and subsequent tax years.
8.Finance Act 2014 provides that from 2015-16 there are two personal allowances available by reference to an individual’s date of birth: one for those born after 5 April 1938 and one for those born before 6 April 1938. It also set the amount of the personal allowance for those born after 5 April 1938 at £10,500 for 2015-16, which Finance Act 2015 increases to £10,600.
9.The amount of the personal allowance for those born before 6 April 1938 is fixed at £10,660. This section increases the personal allowance to £10,800 for 2016-17, so it also removes the personal allowance for those born before 6 April 1938. The effect is that from 2016-17 everyone, regardless of their date of birth, is entitled to the same personal allowance.