2008 No. 673
Income Tax

The Income Tax (Indexation) Order 2008

Made
Laid before the House of Commons
Coming into force
The Treasury make the following Order in compliance with the duty imposed upon them by sections 257C(3) and 265(1A) of the Income and Corporation Taxes Act 19881.

Citation, commencement and interpretation1.

(1)

This Order may be cited as the Income Tax (Indexation) Order 2008 and shall come into force on 6th April 2008.

(2)

In this Order references to sections, without more, are references to sections of the Income and Corporation Taxes Act 1988.

Indexation of personal allowance and married couple’s allowance for the year 2008-092.

(1)

The amounts specified in the sections mentioned in subsection (1) of section 257C2 (indexation of allowances) are replaced for the year 2008-09 with the amounts specified in paragraphs (2) to (5) below.

(2)

The amount specified in section 256B3 (the minimum amount) is £2,540.

(3)

The amounts specified in section 2574 (personal allowance) are—

(a)

in subsection (1) (personal allowance for those aged under 65) £5,435;

(b)

in subsection (2) (personal allowance for those aged 65 to 74) £7,850;

(c)

in subsection (3) (personal allowance for those aged 75 and over) £8,000;

(d)

in subsection (5) (adjusted net income limit) £21,800.

(4)

The amounts specified in section 257A5 (married couple’s allowance: marriages before 5 December 2005) are—

(a)

in subsection (2) (married couple’s allowance: one spouse aged less than 75 and born before 6th April 1935) £6,535;

(b)

in subsection (3) (married couple’s allowance: one spouse aged 75 or over) £6,625;

(c)

in subsection (5) (adjusted net income limit) £21,800.

(5)

The amounts specified in section 257AB6 (marriages and civil partnerships on or after 5 December 2005) are—

(a)

in subsection (2)(a) (married couple’s allowance: one spouse or civil partner aged 75 or over) £6,625;

(b)

in subsection (2)(b) (married couple’s allowance: one spouse or civil partner aged less than 75 and born before 6th April 1935) £6,535;

(c)

in subsection (4) (adjusted net income limit) £21,800.

Indexation of blind person’s allowance for the year 2008-093.

The amount specified in section 265(1)7 (blind person’s allowance) is replaced for the year 2008-09 with the amount of £1,800.
Frank Roy
Dave Watts
Two of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE
(This note is not part of the Order)

This Order replaces the amounts specified in sections 256B, 257, 257A, 257AB and 265 of the Income and Corporation Taxes Act 1988 in accordance with the directions given in section 257C(1) of that Act.

This Order applies to individuals who are not resident in the United Kingdom and who satisfy the conditions of section 278(2) of the Income and Corporation Taxes Act 1988. The allowances, the minimum amount and the adjusted net income limits for 2008-09 which apply to individuals who are resident in the United Kingdom in the tax year 2008-09 are specified in the Income Tax (Indexation) (No. 2) Order 2007 (S.I. 2007/3481).

This Order does not impose any costs on business.