Income Tax (Indexation) Order 2001

Cited as:SI 2001/638
Jurisdiction:UK Non-devolved

2001No. 638

INCOME TAX

The Income Tax (Indexation) Order 2001

7thMarch2001

The Treasury, in pursuance of sections 1(6) and 257C(3) of the Income and Corporation Taxes Act 1988( 1), hereby make the following Order:

1. This Order may be cited as the Income Tax (Indexation) Order 2001.

2. - (1) The amounts which, unless Parliament otherwise determines, will be treated by virtue of sections 1(4)( 2) , 257C(1) and 265(1A) of the Income and Corporation Taxes Act 1988 as specified for the year 2001-02 in sections 1(2)( 3) and 265( 4)of that Act are set out in paragraphs (2) and (3).

(2) In section 1(2) of the said Act (the charge to income tax) -

(a) in paragraph (aa) (starting rate limit) -£ 1,580;(b) in paragraph (b) (basic rate limit) -£ 29,400.

(3) In section 265(1) of the said Act (blind person's allowance) -£ 1,450.

Jim Dowd

Greg Pope

Two of the Lords Commissioners of Her Majesty's Treasury

7th March 2001

EXPLANATORY NOTE

(This note is not part of the Order)

Sections 1(6) and 257C(3) of the Income and Corporation Taxes Act 1988 ("the Act") operate to provide that the Treasury shall by order made by statutory instrument before 6th April 2001 specify the amounts which by virtue of those sections shall, unless Parliament otherwise determines, be treated as specified for the year 2001-02.

This Order specifies the relevant amounts for the purposes of section 1(2) (starting rate and basic rate limits) and section 265(1) (blind person's allowance) of the Act for the year 2001-02. The relevant amounts for the purposes of section 257 (personal allowances) and section 257A (married couple's allowances for those born before 6th April 1935) were specified by the Income Tax (Indexation) (No. 2) Order 2000 (S.I. 2000/2996).

The relevant amounts for the purposes of sections 1(2) (starting rate and basic rate limits) and 265(1) (blind person's allowance) of the Act were specified for the year 2000-01 by the Income Tax (Indexation) Order 2000 (S.I. 2000/806).

Following the amendments to sections 1(4) and 257C(1) of the Act made by section 107(1) to (3) of the Finance Act 1993, the amounts in sections 1(2)(aa) and(b), and 265(1) of the Act are increased by this Order in accordance with the percentage increase in the retail prices index for September 2000 over that for September 1999. The basic rate limit has been rounded up to the nearest £100 in accordance with sections 1(4)(b) of the Act and, in the case of the other amounts, the...

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