Section 2 — Finance Act 2014: Basic rate limit for 2015-16 and personal allowances from 2015

Basic rate limit for 2015-16 and personal allowances from 2015 2 1 For the tax year 2015-16—

a the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with “ £31,785 ” , and b the amount specified in section 35(1) (personal allowance) is replaced with . “£10,600” 2 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 (indexation of allowances), so far as relating to the amount specified in section 35(1), does not apply.

3 In section 34(1)(a) of that Act (introduction), omit “, 36”.

4 In section 35 of that Act (personal allowance for those born after 5 April 1948)—

a in subsection (1)(a), for “1948” substitute “ 1938 ” , and b in the heading, for “ 1948 ” substitute “ . 1938 ” 5 Omit section 36 of that Act (personal allowance for those born after 5 April 1938 but before 6 April 1948).

6 In section 45(4)(b) of that Act (marriages before 5 December 2005), omit “36(2) or”.

7 In section 46(4)(b) of that Act (marriages and civil partnerships on or after 5 December 2005), omit “36(2) or”.

8 In section 57 of that Act (indexation of allowances)—

a in subsection (1)(a), for “1948” substitute “ 1938 ” , ... aa in subsection (1)(h), omit “36(2),”, and b in subsection (4) omit “36(2),”.

9 The amendments made by subsections (3) to (8) have effect for the tax year 2015-16 and subsequent tax years.