Section 1 — Finance Act 2014: Charge, rates, basic rate limit and personal allowance for 2014-15

Charge, rates, basic rate limit and personal allowance for 2014-15 1 1 Income tax is charged for the tax year 2014-15.

2 For that tax year—

a the basic rate is 20%, b the higher rate is 40%, and c the additional rate is 45%.

3 For that tax year—

a the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £31,865 ” , and b the amount specified in section 35(1) of that Act (personal allowance for those born after 5 April 1948) is replaced with “ £10,000 ” .

4 Accordingly for that tax year—

a section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply, and b section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply.