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The Income Tax (Indexation) Order 2018

S.I. 2018/1150 · Made 6 November 2018

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Income Tax

Made 6th November 2018

The Treasury, in exercise of the powers conferred by section 57(6) of the Income Tax Act 2007f1, make the following Order:

Annotations to the whole text

Footnotes

f1

2007 c. 3. Section 57 was amended by section 4(3) of the Finance Act 2009 (c. 10), section 4(6) of the Finance Act 2012 (c. 14), Part 10 of Schedule 1 to the Statute Law (Repeals) Act 2013 (c. 2) (“SLRA 2013”), section 4(3) of the Finance Act 2014 (c. 26), section 5(10) of the Finance Act 2015 (c. 11) (“FA 2015”) and section 3(2) of the Finance (No. 2) Act 2015 (c. 33).

Contents

  1. 1Citation and interpretation
  2. 2Indexation of allowances for the tax year 2019-20
  3. Signature
  4. Explanatory note

1Citation and interpretation

(1)

This Order may be cited as the Income Tax (Indexation) Order 2018.

(2)

In this Order, references to sections are references to sections of the Income Tax Act 2007.

2Indexation of allowances for the tax year 2019-20

For the tax year 2019-20—

(a)

the amount specified in section 38(1)f1 (blind person’s allowance) is replaced with “£2,450”;

(b)

the amount specified in section 43f2 (tax reductions for married couples and civil partners: the minimum amount) is replaced with “£3,450”;

(c)

the amount specified in section 45(3)(a)f3 (married couple’s allowance: marriages before 5 December 2005) is replaced with “£8,915”;

(d)

the amount specified in section 46(3)(a)f4 (married couple’s allowance: marriages and civil partnerships on or after 5 December 2005) is replaced with “£8,915”;

(e)

the amount specified in sections 45(4) and 46(4)f5 (married couple’s allowance: adjusted net income limit) is replaced with “£29,600”.

Signature

Mike Freer

Rebecca Harris

Two of the Lords Commissioners of Her Majesty’s Treasury

6th November 2018

Explanatory note

(This note is not part of the Order)

This Order fulfils the indexation requirements in section 57 of the Income Tax Act 2007 (c. 3) that certain allowances and limits are increased by reference to the Consumer Prices Index. These increases have effect for the 2019-20 tax year. This Order does not provide for the indexation of the personal allowance, as the Finance Bill 2018 contains provision for disapplying the indexation requirement for it in respect of the 2019-20 tax year.

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.