Search Legislation

Advanced Search

Finance Act 2009

Background Note

4.An individual’s taxable income up to the basic rate limit is liable to income tax at the basic rate of income tax. An individual’s taxable income above the basic rate limit is liable to income tax at the higher rate of income tax.

5.The provisions in ITA which provide for the basic rate of income tax also provide for the amount, unless Parliament determines otherwise, to be increased annually by indexation. HM Treasury order of 24 November 2008 (2008 No. 3023) which specified the indexed amount for the 2009-10 tax year, is overridden by this section.

6.The table below sets out the amounts of the basic rate limit for 2008–09, the amount specified by order for 2009-10 and the amount specified by this section for 2009-10:

2008-092009-10 by Treasury order2009-10 by this section
£34,800£36,600£37,400

7.The effect of this section is to override the amount specified by order for the basic rate limit and to set it at an amount £800 greater than the indexed increase.

Back to top

Options/Help

Print Options

Close

Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources