{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-21",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-21.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/21",
  "kind": "section",
  "number": "21",
  "heading": "Indexation of the basic rate limit and starting rate limit for savings",
  "text": "(1) This section applies if the consumer prices index for the September before the start of a tax year is higher than it was for the previous September.\n(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(3) The basic rate limit for the tax year is the amount found as follows.\nStep 1\nIncrease the basic rate limit for the previous tax year by the same percentage as the percentage increase in the consumer prices index.\nStep 2\nIf the result of Step 1 is a multiple of £100, it is the basic rate limit for the tax year.\nIf the result of Step 1 is not a multiple of £100, round it up to the nearest amount which is a multiple of £100.\nThat amount is the basic rate limit for the tax year.\n(3A) The starting rate limit for savings for the tax year is the amount found as follows.\nStep 1\nIncrease the starting rate limit for savings for the previous tax year by the same percentage as the percentage increase in the consumer prices index.\nStep 2\nIf the result of Step 1 is a multiple of £10, it is the starting rate limit for savings for the tax year.\nIf the result of Step 1 is not a multiple of £10, round it up to the nearest amount which is a multiple of £10.\nThat amount is the starting rate limit for savings for the tax year.\n(4) Subsections (3) and (3A) do not require a change to be made in the amounts deductible or repayable under PAYE regulations during the period beginning on 6 April and ending on 17 May in the tax year.\n(5) Before the start of the tax year the Treasury must make an order replacing the amounts specified in sections 10 and 12 with the amounts which, as a result of subsections (3) and (3A), are the basic rate limit and starting rate limit for savings for the tax year.\n(6) In this section “consumer prices index” means the all items consumer prices index published by the Statistics Board.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 21(1) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 21(2) omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), Sch. 1 para. 11(2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 21(3) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(a)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "S. 21(3A) inserted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(3)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in s. 21(3A) substituted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(a)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 21(4) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(4)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(a)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(b)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 21(5) substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(5)(c)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "S. 21(6) inserted (with effect in accordance with s. 4(4) of the amending Act) by Finance Act 2014 (c. 26), s. 4(2)(b)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in s. 21 heading substituted (21.7.2008) by Finance Act 2008 (c. 9), Sch. 1 para. 11(6)"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 21 excluded (21.7.2009) by Finance Act 2009 (c. 10), s. 2(2)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "S. 21 excluded (19.7.2011) by Finance Act 2011 (c. 11), s. 2(2)"
    },
    {
      "type": "C",
      "label": "C3",
      "text": "S. 21 excluded (17.7.2012) by Finance Act 2012 (c. 14), s. 2(2)"
    },
    {
      "type": "C",
      "label": "C4",
      "text": "S. 21 excluded (17.7.2013) by Finance Act 2013 (c. 29), s. 3(2)"
    },
    {
      "type": "C",
      "label": "C5",
      "text": "S. 21 excluded (17.7.2014) by Finance Act 2014 (c. 26), ss. 1(4)(a), 2(2)(a)"
    },
    {
      "type": "C",
      "label": "C6",
      "text": "S. 21 excluded (temp.) (17.7.2014) by Finance Act 2014 (c. 26), s. 3(3)"
    },
    {
      "type": "C",
      "label": "C7",
      "text": "S. 21 excluded (26.3.2015) by Finance Act 2015 (c. 11), s. 4(2)"
    },
    {
      "type": "C",
      "label": "C8",
      "text": "S. 21 excluded (6.4.2015 for the tax year 2015-16) by Finance Act 2014 (c. 26), s. 2(2)(a)"
    },
    {
      "type": "C",
      "label": "C9",
      "text": "S. 21 excluded (temp.) (27.4.2017 in relation to the tax year 2017-18) by Finance Act 2017 (c. 10), s. 4(3)"
    },
    {
      "type": "C",
      "label": "C10",
      "text": "S. 21 excluded (15.3.2018) by Finance Act 2018 (c. 3), s. 5"
    },
    {
      "type": "C",
      "label": "C11",
      "text": "S. 21 excluded (12.2.2019) by Finance Act 2019 (c. 1), s. 5(5)(a)"
    },
    {
      "type": "C",
      "label": "C12",
      "text": "S. 21 excluded (12.2.2019) by Finance Act 2019 (c. 1), s. 6"
    },
    {
      "type": "C",
      "label": "C13",
      "text": "S. 21 excluded (for the tax year 2020-21) by Finance Act 2020 (c. 14), s. 4"
    },
    {
      "type": "C",
      "label": "C14",
      "text": "S. 21 excluded (6.4.2021 for the tax year 2021-22) by Finance Act 2021 (c. 26), s. 4(2)"
    },
    {
      "type": "C",
      "label": "C15",
      "text": "S. 21 excluded (for the tax year 2022-23) by Finance Act 2022 (c. 3), s. 5(2)"
    },
    {
      "type": "C",
      "label": "C16",
      "text": "S. 21 excluded (for the tax years 2022-23, 2023-24, 2024-25 and 2025-26) by Finance Act 2021 (c. 26), s. 5(3)(a)"
    },
    {
      "type": "C",
      "label": "C17",
      "text": "S. 21 excluded (6.4.2023 for the tax year 2023-24) by Finance Act 2023 (c. 30), s. 4(2)"
    },
    {
      "type": "C",
      "label": "C18",
      "text": "S. 21 excluded (6.4.2024 for the tax year 2024-25) by Finance (No. 2) Act 2024 (c. 12), s. 4(2)"
    },
    {
      "type": "C",
      "label": "C19",
      "text": "S. 21 excluded (for the tax year 2025-26) by Finance Act 2025 (c. 8), s. 4(2)"
    },
    {
      "type": "C",
      "label": "C20",
      "text": "S. 21 excluded (for the tax years 2026-27, 2027-28, 2028-29, 2029-30 and 2030-31) by Finance Act 2026 (c. 11), s. 9(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/21",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}