http://www.legislation.gov.uk/ukpga/2007/3/section/21/2014-07-17Income Tax Act 2007An Act to restate, with minor changes, certain enactments relating to income tax; and for connected purposes.texttext/xmlenStatute Law Database2026-09-18Expert Participation2014-07-17 Income Tax Act 2007s. 788(7)Legal Services Act 2007Sch. 21 para. 161(b)s. 29 192 193s. 211(2)art. 2(h) Part 2Chapter 2211This section applies if the consumer prices index for the September before the start of a tax year is higher than it was for the previous September.2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3The basic rate limit for the tax year is the amount found as follows.Step 1Increase the basic rate limit for the previous tax year by the same percentage as the percentage increase in the consumer prices index.Step 2If the result of Step 1 is a multiple of £100, it is the basic rate limit for the tax year.If the result of Step 1 is not a multiple of £100, round it up to the nearest amount which is a multiple of £100.That amount is the basic rate limit for the tax year.3AThe starting rate limit for savings for the tax year is the amount found as follows.Step 1Increase the starting rate limit for savings for the previous tax year by the same percentage as the percentage increase in the consumer prices index.Step 2If the result of Step 1 is a multiple of £10, it is the starting rate limit for savings for the tax year.If the result of Step 1 is not a multiple of £10, round it up to the nearest amount which is a multiple of £10.That amount is the starting rate limit for savings for the tax year.4Subsections (3) and (3A) do not require a change to be made in the amounts deductible or repayable under PAYE regulations during the period beginning on 6 April and ending on 17 May in the tax year.5Before the start of the tax year the Treasury must make an order replacing the amounts specified in sections 10 and 12 with the amounts which, as a result of subsections (3) and (3A), are the basic rate limit and starting rate limit for savings for the tax year.6In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.Words in s. 21 heading substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(6)S. 21(2) omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 11(2)S. 21(3A) inserted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(3)Words in s. 21(4) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(4)Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(a)Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(b)Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(c)S. 21 excluded (21.7.2009) by Finance Act 2009 (c. 10), s. 2(2)S. 21 excluded (19.7.2011) by Finance Act 2011 (c. 11), s. 2(2)S. 21 excluded (17.7.2012) by Finance Act 2012 (c. 14), s. 2(2)S. 21 excluded (17.7.2013) by Finance Act 2013 (c. 29), s. 3(2)S. 21 excluded (17.7.2014) by Finance Act 2014 (c. 26), ss. 1(4)(a), 2(2)(a)S. 21 excluded (temp.) (17.7.2014) by Finance Act 2014 (c. 26), s. 3(3)S. 21(6) inserted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(b)Words in s. 21(3A) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(a)Words in s. 21(1) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(a)Words in s. 21(3) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(a)