# The Income Tax (Indexation) Order 1999, Note: Explanatory note


(This note is not part of the Order)
Sections 1(6) and 257C(3) of the Income and Corporation Taxes Act 1988 (“the Act”) operate to provide that the Treasury shall by order made by statutory instrument before 6th April 1999 specify the amounts which by virtue of those sections shall, unless Parliament otherwise determines, be treated as specified for the year 1999–00.
This Order specifies the relevant amounts for the purposes of section 1(2) (lower rate and basic rate limits), section 257(2), (3) and (5) (personal allowances for persons of 65 or more), section 257A (married couple’s allowance) and section 265(1) (blind person’s allowance) of the Act for the year 1999–00. The relevant amount for the purposes of section 257(1) of the Act (basic personal allowance) was specified by the Income Tax (Indexation) (No. 2) Order 1998 (S.I. 1998/2704).
The relevant amounts for the purposes of sections 1(2) (lower rate and basic rate limits), 257 (personal allowances), 257A(1) (basic married couple’s allowance) and 265(1) (blind person’s allowance) of the Act were specified for the year 1998–99 by the Income Tax (Indexation) Order 1998 (S.I. 1998/755).
The amounts of the married couple’s allowances for persons of 65 or more were specified for the year 1998–99 by the Income Tax (Indexation) Order 1998 but amended by section 27(2) of the Finance Act 1998 (c. 36) for the purposes of indexation for the year 1999–00.
Following the amendments to sections 1(4) and 257C(1) of the Act made by section 107(1) to (3) of the Finance Act 1993, the amounts in sections 1, 257(2), (3) and (5), 257A and 265 of the Act are increased by this Order in accordance with the percentage increase in the retail prices index for September 1998 over that for September 1997. Certain of the amounts have been rounded up to the nearest £100 in accordance with sections 1(4) and 257C(1)(a) of the Act and, in the case of the other amounts, the increases have been rounded up to the nearest £10 in accordance with section 257C(1)(b) of the Act.
The “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 1997 is 159.3 and for September 1998 164.4 (based on January 1987 as 100) (see Table 3.1 on page T28 of the November 1998 issue (No. 540) of Economic Trends, a publication of the Government Statistical Service).

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Source: https://www.legislation.gov.uk/uksi/1999/597/note (the official version)
Page: https://openlegislation.uk/income-tax-indexation-order-1999/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.