Explanatory note

This Order gives effect to the indexation requirement in section 57 of the Income Tax Act 2007 (c. 3) (“the Act”). Section 57 provides that, if the consumer prices index has risen, corresponding increases are to be made to certain allowances and limits. These increases have effect for the 2015-16 tax year.

Article 2 increases the amount of the blind person’s allowance and the minimum and maximum amounts of married couple’s allowance. It also increases the income limits for married couple’s allowance and the personal allowance for individuals born before 5th April 1938.

This Order does not make provision under section 21 of the Act (modifying the amounts of the basic rate limit and starting rate limit for savings) or under section 57(1)(a) of the Act (increasing the personal allowance for individuals born after 5th April 1938) as the requirement to do so was disapplied for the 2015-16 tax year by sections 2(2) and 3(3) of the Finance Act 2014 (c. 26).

This Order also does not make provision, under section 57 of the Act, dealing with section 36 of the Act. Section 36 was repealed, with effect from the 2015-16 tax year, by section 2(5) of the Finance Act 2014.

A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and relates to a predetermined indexation formula.