Section 11D — Income Tax Act 2007: Income charged at the savings basic, higher and additional rates : individuals

Income charged at the savings basic, higher and additional rates : individuals 11D 1 Income tax is charged at the savings basic rate on an individual’s income which—

a is saving income, and b would otherwise be charged at the basic rate or the default basic rate.

2 Income tax is charged at the savings higher rate on an individual’s income which—

a is savings income, and b would otherwise be charged at the higher rate or the default higher rate.

3 Income tax is charged at the savings additional rate on an individual’s income which—

a is savings income, and b would otherwise be charged at the additional rate or the default additional rate.

4 Subsections (1) to (3)—

a have effect after sections 12 and 12A have been applied (so that any reference in subsections (1) to (3) to income which would otherwise be charged at a particular rate does not include income charged at the starting rate for savings or at the savings nil rate),

and b are subject to any other provisions of the Income Tax Acts (apart from sections 10 and 11C) which provide for income to be charged at different rates of income tax in some circumstances.

5 Section 16 has effect for determining the extent to which an individual’s savings income above the starting rate limit for savings would otherwise be charged at the basic, higher or additional rate or the default basic, default higher or default additional rate.

6 In relation to an individual who is a Scottish taxpayer, references in this section to income which would otherwise be charged at a particular rate are to be read as references to income that would, if the individual were not a Scottish taxpayer (but were UK resident), be charged at that rate (and subsection (5) is to be read accordingly).