Section 5 — Finance Act 2008: Abolition of starting and savings rates and creation of starting rate for savings

Abolition of starting and savings rates and creation of starting rate for savings 5 1 Section 6 of ITA 2007 (rates at which income tax is charged) is amended as follows.

2 In subsection (1), omit paragraph (a).

3 In subsection (2), omit “starting rate,”.

4 In subsection (3), for paragraph (a) substitute—

a section 7 (starting rate for savings), .

5 Accordingly, in the heading omit “ starting rate, ”.

6 The amendments made by this section have effect for the tax year 2008-09 and subsequent tax years.

7 Schedule 1 contains provision in connection with—

a the abolition of the starting rate and the savings rate, and b the creation of the starting rate for savings.