Income Tax (Indexation) Order 1998

Cited as:SI 1998/755
Jurisdiction:UK Non-devolved

1998No. 755

INCOME TAX

The Income Tax (Indexation) Order 1998

17thMarch1998

The Treasury, in pursuance of sections 1(6) and 257C(3) of the Income and Corporation Taxes Act 1988 ( a), 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) ( b), 257C(1) and 265(1A) of the Income and Corporation Taxes Act 1988 as specified for the year 1998-99 in sections 1(2) ( c), 257, 257A ( d) and 265 ( e) of 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) in paragraph (aa) (lower rate limit)-£4,300;(b) in paragraph (b) (basic rate limit)-£27,100.

(3) In section 257 of the said Act (personal allowance)-

(a) in subsection (1) (personal allowance)-£4,195;(b) in subsection (2) (personal allowance-age 65 to 74)-£5,410;(c) in subsection (3) (personal allowance-age 75 and over)-£5,600;(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) in subsection (1) (married couple's allowance)-£1,900;(b) in subsection (2) (married couple's allowance-age 65 to 74)-£3,305;(c) in subsection (3) (married couple's allowance-age 75 and over) £3,345;(d) in subsection (5) (income limit for age-related allowances)-£16,200.

(a) 1988 c. 1. Section 1(6) was amended by section 24(2) of the Finance Act 1988 (c. 39) and by section 9(1) and (7) of the Finance Act 1992 (c. 20). Sections 257 to 257F were substituted for section 257 by section 33 of the Finance Act 1988 with effect for the year 1990-91 and subsequent years of assessment. Section 257C was amended by Part IV of Schedule 19 to the Finance Act 1990 (c. 29) and by section 107(3) of, and Part III(10) of Schedule 23 to, the Finance Act 1993 (c. 34), and was extended by section 56(2) of the Finance Act 1997 (c. 16).

(b) Section 1(4) was amended by section 24(2) of the Finance Act 1988, by section 9(1) and (6) of the Finance Act 1992 and by section 107(2) of the Finance Act 1993.

(c) Section 1(2) was amended by section 24(2) of the Finance Act 1988 and by section 9(1) to (3) of the Finance Act 1992.

(d) Sections 257 and 257A as substituted by section 33 of the Finance Act 1988 were amended by section 33 of the Finance Act 1989 (c. 26). Section 257 was further amended by paragraph 13 of Schedule 20 and Part V(10) of Schedule 41 to the Finance Act 1996 (c. 8);...

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