Explanatory note

This Order is made pursuant to the duties set out at sections 21(5) and 57(6) of the Income Tax Act 2007 (“the Act”). For the tax year 2009-10 it replaces certain amounts specified in the Act with new, increased amounts. The increases are calculated, according to the method provided by sections 21 and 57, by reference to the increase in the retail prices index.

Increases made pursuant to section 21(5) are to the basic rate limit and the starting rate limit for savings. Increases made pursuant to section 57(6) are to personal allowances, married couple’s allowance, blind person’s allowance, the income limit for certain of the personal allowances and the married couple’s allowance (“the adjusted net income limit”) and the minimum amount of the married couple’s allowance (“the minimum amount”).

A full impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.