The Income Tax (Indexation) Order 1988

• Citation: S.I. 1988/503
• Sections: 2

Section 1

This Order may be cited as the Income Tax (Indexation) Order 1988.

Section 2

(1) The amounts which, unless Parliament otherwise determines, will be treated by virtue of section 24(4) and (5) of the Finance Act 1980 as specified for the year 1988—89 in section 32 of the Finance Act 1971 and section 8 of the Income and Corporation Taxes Act 1970 are set out in paragraphs (2) and (3).

(2) In section 32 of the Finance Act 1971 (basic rate limit and higher rate bands)—

(a) the basic rate limit — £18,600, and

(b) the higher rate bands—

(3) In section 8 of the Income and Corporation Taxes Act 1970 (personal allowances) in—

(a) subsection (1)(a)—

(i) (married) — £3,945,

(ii) (married — eighty or upwards) — £5,025;

(b) subsection (1)(b)—

(i) (single) — £2,515,

(ii) (single — eighty or upwards) — £3,190;

(c) subsection (1A)(a) (married — sixty-five or upwards) — £4,855;

(d) subsection (1A)(b) (single — sixty-five or upwards) — £3,070;

(e) subsection (1B) (income limit for the purposes of sub-paragraphs (a)(ii), (b)(ii), (c) and (d)) — £10,200;

(f) subsection (2) (earned income of wife) — £2,515.