The Income Tax (Indexation) (No. 4) Order 2008

• Citation: S.I. 2008/3024
• Sections: 3

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Income Tax (Indexation) (No. 4) Order 2008 and shall come into force on the 6th April 2009.

(2) In this Order references to sections, without more, are references to sections of the Income and Corporation Taxes Act 1988.

Section 2 Indexation of personal allowance and married couple’s allowance for the tax year 2009-10

For the tax year 2009-10 the amounts specified in the provisions mentioned in section 257C(1) (indexation of allowances) are replaced as follows—

(a) the amount specified in section 256B (the minimum amount) is replaced with “£2,670”;

(b) in section 257 (personal allowance) —

(i) the amount specified in subsection (1) (personal allowance for those aged under 65) is replaced with “£6,345”,

(ii) the amount specified in subsection (2) (personal allowance for those aged 65 to 74) is replaced with “£9,490”,

(iii) the amount specified in subsection (3) (personal allowance for those aged 75 and over) is replaced with “£9,640”, and

(iv) the amount specified in subsection (5) (adjusted net income limit) is replaced with “£22,900”;

(c) in section 257A (married couple’s allowance: marriages before 5th December 2005) —

(i) the amount specified in subsection (2) (married couple’s allowance: one spouse aged less than 75 and born before 6th April 1935) is replaced with “£6,865”,

(ii) the amount specified in subsection (3) (married couple’s allowance: one spouse aged 75 or over) is replaced with “£6,965”, and

(iii) the amount specified in subsection (5) (adjusted net income limit) is replaced with “£22,900”;

(d) in section 257AB (marriages and civil partnerships on or after 5th December 2005) —

(i) the amount specified in subsection (2)(a) (married couple’s allowance: one spouse or civil partner aged 75 or over) is replaced with “£6,965”,

(ii) the amount specified in subsection (2)(b) (married couple’s allowance: one spouse or civil partner aged less than 75 and born before 6th April 1935) is replaced with “£6,865”, and

(iii) the amount specified in subsection (4) (adjusted net income limit) is replaced with “£22,900”.

Section 3 Indexation of blind person’s allowance for the tax year 2009-10

For the tax year 2009-10 the amount specified in section 265(1) (blind person’s allowance) is replaced with “£1,890”.