Finance Act 2016

Charge and principal rates etc

1Income tax charge and rates for 2016-17

(1)Income tax is charged for the tax year 2016-17.

(2)For that tax year—

(a)the basic rate is 20%,

(b)the higher rate is 40%, and

(c)the additional rate is 45%.

2Basic rate limit for 2017-18

(1)In section 4(1)(b) of FA 2015 (basic rate limit for 2017-18) for “£32,400” substitute “£33,500”.

(2)Accordingly, omit section 6(b) of F(No.2)A 2015 (basic rate limit for 2017-18).

3Personal allowance for 2017-18

(1)In section 5(1)(b) of FA 2015 (personal allowance for 2017-18) for “£11,200” substitute “£11,500”.

(2)Accordingly, omit section 5(b) of F(No.2)A 2015 (personal allowance for 2017-18).