OpenLegislation

Section 10 Income charged at the ... basic , higher and additional rates: individualsF18F19

United Kingdom

F1(1)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2(2)

Income tax on an individual's income up to the basic rate limit is charged at the basic rate F3....

(3)

Income tax is charged at the higher rate on an individual's income above the basic rate limit F4and up to the higher rate limit.

F5(3A)

Income tax is charged at the additional rate on an individual's income above the higher rate limit.

F6(3B)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3C)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)

This section is subject to—

  • F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  • F8section 11A (income charged at F9Scottish rates),

  • F10section 11B (income charged at the Welsh basic, higher and additional rates),

  • F11section 11C (income charged at the default basic, higher and additional rates: non-UK resident individuals),

  • F12section 11CA (income charged at the property basic, higher and additional rates: individuals),

  • section 11CB (income charged at the Welsh property basic, higher and additional rates: individuals),

  • section 11D (savings income charged at the savings basic, higher and additional rates: individuals),

  • section 12 (savings income charged at the starting rate for savings),

  • F13section 12A (savings income charged at the savings nil rate),

  • section 13 (income charged at the dividend ordinary and dividend upper rates: individuals), and

  • any other provisions of the Income Tax Acts which provide for income of an individual to be charged at different rates of income tax in some circumstances.

C1(5)

The basic rate limit is F14£37,700.

F15(5A)

The higher rate limit for a tax year is equal to—

(a)

twice the amount specified in subsection (1) of section 35 (personal allowance) for the tax year, plus

(b)

the amount specified in subsection (2) of that section (amount at which personal allowance starts to be withdrawn).

(5B)

Before the start of the tax year the Treasury must make an order specifying the amount which is, as a result of subsection (5A), the higher rate limit for the tax year.

F16(6)

The basic rate limit F17and higher rate limit are increased in some circumstances: see—

(a)

section 414(2) (gift aid relief), and

(b)

section 192(4) of FA 2004 (relief for pension contributions).

(7)

See section 21 for indexation of the basic rate limit.

Annotations

Textual amendments

F1

S. 10(1) omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 3(2)

F2

S. 10(2) substituted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 3(3)

F3

Words in s. 10(2) omitted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(6)(24); S.I. 2016/1161, regs. 2, 3

F4

Words in s. 10(3) inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 4(2)

F5

S. 10(3A) inserted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 4(3)

F6

S. 10(3B)(3C) omitted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by virtue of Finance Act 2014 (c. 26), Sch. 38 para. 4(a)

F7

S. 10(4) entry omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 3(4)

F8

Words in s. 10(4) inserted (with effect in accordance with Sch. 38 para. 12 of the amending Act) by Finance Act 2014 (c. 26), Sch. 38 para. 4(b)

F9

Word in s. 10(4) substituted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Scotland Act 2016 (c. 11), ss. 13(14), 14(6)(15), 72(3); S.I. 2016/1161, regs. 2, 3

F10

Words in s. 10(4) inserted (24.7.2018) by Wales Act 2014 (c. 29), ss. 9(4), 14, 29(4); S.I. 2018/892, art. 3 (with arts. 5, 6, 8)

F11

Words in s. 10(4) inserted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(7)(24); S.I. 2016/1161, regs. 2, 3

F12

Words in s. 10(4) inserted (for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), s. 6(8), Sch. 1 para. 6

F13

Words in s. 10(4) inserted (with effect for the tax year 2016-17 and subsequent years) by Finance Act 2016 (c. 24), s. 4(4)(17)

F14

Sum in s. 10(5) specified (1.2.2021 with effect for the tax year 2021-22) by The Income Tax (Indexation) Order 2021 (S.I. 2021/111), art. 2

F15

S. 10(5A)(5B) substituted for s. 10(5A) (with the substituted s. 10(5A) having effect for the tax year 2023-24 and subsequent tax years, and the substituted s. 10(5B) having effect for the tax year 2028-29 and subsequent tax years) by Finance Act 2023 (c. 1), s. 6(1)(3)(5)

F16

S. 10(6)(7) inserted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by Finance Act 2008 (c. 9), Sch. 1 para. 3(5)

F17

Words in s. 10(6) substituted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 4(5)

F18

Word in s. 10 heading omitted (21.7.2008 with effect in accordance with Sch. 1 para. 65 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 3(6)

F19

Words in s. 10 heading substituted (with effect in accordance with Sch. 2 para. 25 of the amending Act) by Finance Act 2009 (c. 10), Sch. 2 para. 4(6)

Modifications

C1

S. 10(5): sum specified (for the tax years 2022-23, 2023-24, 2024-25 and 2025-26) by Finance Act 2021 (c. 26), s. 5(1)