Income Tax (Indexation) Order 1998
| Jurisdiction | UK Non-devolved |
| Citation | SI 1998/755 |
| Year | 1998 |
1998 No. 755
INCOME TAX
The Income Tax (Indexation) Order 1998
Made 17th March 1998
The Treasury, in pursuance of sections 1(6) and 257C(3) of the Income and Corporation Taxes Act 19881, hereby make the following Order:
1. This Order may be cited as the Income Tax (Indexation) Order 1998.
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 1998–99 in sections 1(2)3, 257, 257A4and 2655of that Act are set out in paragraphs (2) to (5).
(2) In section 1(2) of the said Act (the charge to income tax)—
(a)
(a) in paragraph (aa) (lower rate limit)—£4,300;
(b)
(b) in paragraph (b) (basic rate limit)—£27,100.
(3) In section 257 of the said Act (personal allowance)—
(a)
(a) in subsection (1) (personal allowance)—£4,195;
(b)
(b) in subsection (2) (personal allowance—age 65 to 74)—£5,410;
(c)
(c) in subsection (3) (personal allowance—age 75 and over)—£5,600;
(d)
(d) in subsection (5) (income limit for age-related allowances)—£16,200.
(4) In section 257A of the said Act (married couple’s allowance)—
(a)
(a) in subsection (1) (married couple’s allowance)—£1,900;
(b)
(b) in subsection (2) (married couple’s allowance—age 65 to 74)—£3,305;
(c)
(c) in subsection (3) (married couple’s allowance—age 75 and over) £3,345;
(d)
(d) in subsection (5) (income limit for age-related allowances)—£16,200.
(5) In section 265(1) of the said Act (blind person’s allowance)—£1,330.
Graham Allen
Jim Dowd
Two of the Lords Commissioners of Her Majesty’s Treasury
17th March 1998
(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 1998 specify the amounts which by virtue of those sections shall, unless Parliament otherwise determines, be treated as specified for the year 1998–99. These are the lower rate and basic rate limits (section 1 of the Act), the personal and married couple’s allowances (sections 257 and 257A of the Act respectively) and, by virtue of the extension to section 257 of the Act by section 56(2) of the Finance Act 1997, the blind person’s allowance (section 265 of the Act).
This Order specifies the relevant amounts for the 1998–99 year of assessment.
The amount of the lower rate limit was specified for the year 1997–98 by section 54(2) of the Finance Act 1997 (c. 16). The amount of the basic rate limit for the year 1997–98 was specified by the Income Tax (Indexation) Order 1996 (S.I. 1996/2952).
For the year 1997–98, the relevant amounts for the purposes of subsections (1), (2) and (3) of section 257 of the Act were specified by section 55 of the Finance Act 1997. The relevant amounts for the purposes of sections 257(5) and 257A of the Act were specified by the Income Tax (Indexation) Order 1996.
The amount of the blind person’s allowance was specified for the year 1997–98 by section 56(1) of the Finance Act 1997.
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, 257, 257A and 265 of the Act are increased by this Order in accordance with the percentage increase in the retail prices index for September 1997 over that for September 1996. Certain of the amounts have been rounded up to the nearest £100 in accordance with sections 1(4) and 2...
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