{
  "url": "https://openlegislation.uk/income-tax-indexation-no2-order-2005/note",
  "json_url": "https://openlegislation.uk/income-tax-indexation-no2-order-2005/note.json",
  "legislation": "uksi/2005/3327",
  "legislation_title": "The Income Tax (Indexation) (No.2) Order 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-indexation-no2-order-2005",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nSection 257C(3) of the Income and Corporation Taxes Act 1988 (“the Act”) operates to provide that the Treasury shall by order made by statutory instrument before 6th April 2006 specify the amounts which by virtue of that section shall, unless Parliament otherwise determines, be treated as specified for the purposes of sections 257 (personal allowances), 257AB (married couple’s allowance (post 5th December 2005 marriages and civil partnerships)), 257A (married couples allowances for those born before 6th April 1935) and 265 (blind person’s allowance) of the Act for the year of assessment 2006-07.\nThe relevant amounts for the purposes of sections 257(1),(2),(3) and (5) (personal allowance), section 257(5) (income limit for age-related personal allowances), section 257A (married couple’s allowances) and section 265(1) (blind person’s allowance) of the Act were specified for the year 2005-6 by the Income Tax (Indexation) (No.2) Order 2004 (S.I. 2004/3161). The amounts in section 257(2) (personal allowance – age 65-74) and section 257(3) (personal allowance – age 75 and over) were subsequently increased by reference to the rise in earnings by section 9 (1)(a) and (b) of the Finance Act 2005.\nFor 2005-06, the amounts in sections 257, 257AB, 257A and 265(1) of the Act are increased by this Order in accordance with the percentage increase in the retail prices index for September 2005 over that for September 2004. Certain of the amounts have been rounded up to the nearest £100 in accordance with section 257C(1)(a) of the Act, and, in the case of other amounts, the increases have been rounded up to the nearest £10 in accordance with section 257C(1)(b) of the Act.\nThe retail prices index is defined in section 833(2) of the Act, as amended by paragraph 22 of Schedule 2 to the Transfer of Functions (Registration and Statistics) Order 1996 (S.I. 1996/273), as the “general index of retail prices (for all items) published by the Office for National Statistics”. The retail prices index for September 2004 is 188.1 and for September 2005 is 193.1.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2005/3327/note",
    "retrieved_at": "2026-10-29T04:42:20.514408+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."
}