Section 12 Income charged at the starting rate for savingsF1

United Kingdom

(1)

Income tax is charged at the starting rate for savings F2... on so much of an individual's income up to the starting rate limit for savings F3as—

(a)

is savings income, and

(b)

would otherwise be charged at the basic rate or the default basic rate.

(2)

This is subject to any provisions of the Income Tax Acts (apart from section 10) which provide for income of an individual to be charged at different rates of income tax in some circumstances.

C1(3)

The starting rate limit for savings is F4£5,000.

(4)

See section 21 for indexation of the starting rate limit for savings.

(5)

Section 16 has effect for determining the extent to which a person's income up to the starting rate limit for savings consists of savings income.

Annotations

Textual amendments

F1: S. 12 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. 5
F2: Words in s. 12(1) 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(10)(a)(24); S.I. 2016/1161, regs. 2, 3
F3: Words in s. 12(1) substituted (30.11.2016 with effect in relation to tax year 2017-18 and subsequent tax years) by Finance Act 2016 (c. 24), s. 6(10)(b)(24); S.I. 2016/1161, regs. 2, 3
F4: Sum in s. 12(3) confirmed (for the tax year 2025-26) by Finance Act 2025 (c. 8), s. 4(1)

Modifications

C1: S. 12(3): sum confirmed (for the tax years 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31) by Finance Act 2026 (c. 11), s. 9(1)