PART 1Income tax, corporation tax and capital gains tax

CHAPTER 1Charge, rates etc

Income tax

2Basic rate limit for 2015-16 and personal allowances from 2015

(1)

For the tax year 2015-16—

(a)

the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £31,785 ”, and

(b)

the amount specified in section 35(1) (personal allowance) is replaced with F1“£10,600”.

(2)

Accordingly, for that tax year—

(a)

section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and

(b)

section 57 (indexation of allowances), so far as relating to the amount specified in section 35(1), does not apply.

(3)

In section 34(1)(a) of that Act (introduction), omit “, 36”.

(4)

In section 35 of that Act (personal allowance for those born after 5 April 1948)—

(a)

in subsection (1)(a), for “1948” substitute “ 1938 ”, and

(b)

in the heading, for “1948” substitute “ 1938 ”.

(5)

Omit section 36 of that Act (personal allowance for those born after 5 April 1938 but before 6 April 1948).

(6)

In section 45(4)(b) of that Act (marriages before 5 December 2005), omit “36(2) or”.

(7)

In section 46(4)(b) of that Act (marriages and civil partnerships on or after 5 December 2005), omit “36(2) or”.

(8)

In section 57 of that Act (indexation of allowances)—

(a)

in subsection (1)(a), for “1948” substitute “ 1938 ”, F2...

F3(aa)

in subsection (1)(h), omit “36(2),”, and

(b)

in subsection (4) omit “36(2),”.

(9)

The amendments made by subsections (3) to (8) have effect for the tax year 2015-16 and subsequent tax years.