The Income Tax (Indexation) Order 2010
| Jurisdiction | UK Non-devolved |
| Citation | SI 2010/2879 |
| Year | 2010 |
2010 No. 2879
Income Tax
The Income Tax (Indexation) Order 2010
Made 2nd December 2010
The Treasury, in exercise of the powers conferred by sections 21(5) and 57(6) of the Income Tax Act 20071, make the following Order:
Citation and interpretation
1.—(1) This Order may be cited as the Income Tax (Indexation) Order 2010.
(2) In this Order, references to sections are references to sections in the Income Tax Act 2007.
Indexation of the rate limits for the tax year 2011–12
2. For the tax year 2011–12, the amount specified in section 10(5) (basic rate limit)2is replaced with “£39,200”.
3. For the tax year 2011–12, the amount specified in section 12(3) (starting rate limit for savings)3is replaced with “£2,560”.
Indexation of allowances for the tax year 2011–12
4. For the tax year 2011–12—
(a) the amount specified in section 35(1) (personal allowance for those aged under 65)4is replaced with “£6,785”;
(b) the amount specified in section 36(1) (personal allowance for those aged 65 to 74)5is replaced with “£9,940”;
(c) the amount specified in section 37(1) (personal allowance for those aged 75 and over)6is replaced with “£10,090”;
(d) the amount specified in section 38(1) (blind person’s allowance)7is replaced with “£1,980”;
(e) the amount specified in section 43 (tax reductions for married couples and civil partners: the minimum amount)8is replaced with “£2,800”;
(f) in section 45 (marriages before 5th December 2005)—
(i) the amount specified in subsection (3)(a) (married couple’s allowance: one spouse aged 75 or over and born before 6th April 1935)9is replaced with “£7,295”;
(ii) the amount specified in subsection (3)(b) (married couple’s allowance: one spouse aged less than 75 and born before 6th April 1935)10is replaced with “£7,185”;
(g) in section 46 (marriages and civil partnerships on or after 5th December 2005)—
(i) the amount specified in subsection (3)(a) (married couple’s allowance: one spouse or civil partner aged 75 or over and born before 6th April 1935)11is replaced with “£7,295”;
(ii) the amount specified in subsection (3)(b) (married couple’s allowance: one spouse or civil partner aged less than 75 and born before 6th April 1935)12is replaced with “£7,185”;
(h) the amount specified in each of sections 36(2)13, 37(2)14, 45(4) and 46(4) (adjusted net income limit)15is replaced with “£24,000”.
Michael Fabricant
Angela Watkinson
Two of the Lords Commissioners of Her Majesty’s Treasury
2nd December 2010
EXPLANATORY NOTE
(This note is not part of the Order)
For the tax year 2011–12 this Order replaces certain amounts specified in the Income Tax Act 2007 with new, 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 the amounts.
Increases...
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