The Income Tax (Indexation) Order 2012

JurisdictionUK Non-devolved
CitationSI 2012/3047
Year2012

2012 No. 3047

Income Tax

The Income Tax (Indexation) Order 2012

Made 6th December 2012

The Treasury make the following Order in exercise of the powers conferred by sections 21(5) and 57(6) of the Income Tax Act 20071:

S-1 Citation and interpretation

Citation and interpretation

1.—(1) This Order may be cited as the Income Tax (Indexation) Order 2012.

(2) In this Order, unless otherwise stated, references to sections are references to sections in the Income Tax Act 2007.

S-2 Indexation of the rate limits for the tax year 2013-14

Indexation of the rate limits for the tax year 2013-14

2. For the tax year 2013-14—

(a) the amount specified in section 10(5) (basic rate limit)2is replaced with “£35,300”;

(b) the amount specified in section 12(3) (starting rate limit for savings)3is replaced with “£2,790”.

S-3 Indexation of allowances for the tax year 2013-14

Indexation of allowances for the tax year 2013-14

3. For the tax year 2013-14—

(a) the amount specified in section 35(1) (personal allowance for people born after 5 April 1948)4is replaced with “£8,325”;

(b) the amount specified in section 38(1) (blind person’s allowance)5is replaced with “£2,160”;

(c) the amount specified in section 43 (tax reductions for married couples and civil partners: the minimum amount)6is replaced with “£3,040”;

(d) in section 45 (marriages before 5 December 2005: married couple’s allowance)—

(i) the amount specified in subsection (3)(a)7is replaced with “£7,915”;

(ii) the amount specified in subsection (3)(b)8is replaced with “£7,805”;

(e) in section 46 (marriages and civil partnerships on or after 5 December 2005: married couple’s allowance)—

(i) the amount specified in subsection (3)(a)9is replaced with “£7,915”;

(ii) the amount specified in subsection (3)(b)10is replaced with “£7,805”;

(f) the amount specified in each of sections 36(2), 37(2), 45(4) and 46(4) (adjusted net income limit)11is replaced with “£26,100”.

Robert Goodwill

Desmond Swayne

Two of the Lords Commissioners of Her Majesty’s Treasury

6th December 2012

EXPLANATORY NOTE

(This note is not part of the Order)

For the tax year 2013-14 this Order replaces certain amounts specified in the Income Tax Act 2007 (c. 3)with increased amounts. In accordance with the method provided by sections 21 and 57, the increases are calculated by reference to the increase in the retail prices index. Where the retail prices index for the September before the start of the tax year is higher than it was for the previous September, an order must be made replacing those amounts. The retail prices index has increased and this Order sets out the new rate limits and...

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