|
|
Alteration of rates of income tax.
|
3.—As respects the year of assessment 2000-2001 and subsequent years of assessment, the Principal Act is amended as follows—
|
|
| |
(a) in section 15, by the substitution of the following for subsection (2) and the Table to the section:
|
|
| |
“(2) Where a person who is charged to income tax for any year of assessment is an individual (other than an individual acting in a fiduciary or representative capacity), such individual shall, notwithstanding anything in the Income Tax Acts but subject to section 16(2), be charged to tax on such individual's taxable income—
|
|
| |
(a) in a case in which such individual is assessed to tax otherwise than in accordance with section 1017 and is not an individual referred to in paragraph (b), at the rates specified in Part 1 of the Table to this section, or
|
|
| |
(b) in a case in which the individual is assessed to tax otherwise than in accordance with section 1017 and is entitled to a reduction of tax provided for in section 462, at the rates specified in Part 2 of the Table to this section, or
|
|
| |
(c) subject to subsections (3) and (5), in a case in which such individual is assessed to tax in accordance with section 1017, at the rates specified in Part 3 of the Table to this section,
|
|
| |
and the rates in each Part of that Table shall be known respectively by the description specified in column (3) in each such Part opposite the mention of the rate or rates, as the case may be, in column (2) of that Part.
|
|
| |
(3) Subject to subsections (4) and (5)—
|
|
| |
(a) where an individual is charged to tax for a year of assessment in accordance with section 1017, and
|
|
| |
(b) both the individual and his or her spouse are each in receipt of income in respect of which the individual is chargeable to tax in accordance with that section,
|
|
| |
the part of his or her taxable income chargeable to tax at the standard rate specified in column (1) of Part 3 of the Table to this section shall be increased by an amount which is the lesser of—
|
|
| |
(i) £6,000, and
|
|
| |
(ii) the specified income of the individual or the specified income of the individual's spouse, whichever is the lesser.
|
|
| |
(4) For the purpose of subsection (3), ‘specified income’ means total income after deducting from such income any deduction attributable to a particular source of income.
|
|
| |
(5) Where all or any part of an increase under subsection (3) in the amount of an individual's taxable income chargeable to income tax at the standard rate is attributable to emoluments from which tax is deductible in accordance with the provisions of Chapter 4 of Part 42 and any regulations made thereunder, then, the full amount of the increase, or that part of the increase, as may be appropriate in the circumstances, shall only be used in accordance with the provisions of that Chapter and those regulations in calculating the amount of tax to be deducted from those emoluments.
|
|
| |
TABLE
|
|
| |
PART 1
|
| | |
Part of taxable income
|
Rate of tax
|
Description of rate
|
|
(1)
|
(2)
|
(3)
|
|
The first £17,000
|
22 per cent
|
the standard rate
|
|
The remainder
|
44 per cent
|
the higher rate
|
|
|
| |
PART 2
|
| | |
Part of taxable income
|
Rate of tax
|
Description of rate
|
|
(1)
|
(2)
|
(3)
|
|
The first £20,150
|
22 per cent
|
the standard rate
|
|
The remainder
|
44 per cent
|
the higher rate
|
|
|
| |
PART 3
|
| | |
Part of taxable income
|
Rate of tax
|
Description of rate
|
|
(1)
|
(2)
|
(3)
|
|
The first £28,000
|
22 per cent
|
the standard rate
|
|
The remainder
|
44 per cent
|
the higher rate
|
|
|
| |
and
|
|
| |
(b) in section 1024—
|
|
| |
(i) by the substitution of the following for paragraph (c) of subsection (2):
|
|
| |
“(c) Subject to subsection (4), Part 1 of the Table to section 15 shall apply to each of the spouse concerned.”,
|
|
| |
and
|
|
| |
(ii) by the substitution of the following for subsection (4):
|
|
| |
“(4) Where the part of the taxable income of a spouse chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of the other spouse and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the ‘appropriate part’) in respect of which the first-mentioned spouse is so chargeable to tax at that rate, the part of taxable income of the other spouse which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned spouse chargeable to tax at the standard rate is less than the appropriate part.”.
|
