The Income Tax (Indexation) Order 2008

• Citation: S.I. 2008/673
• Sections: 3

Section 1 Citation, commencement and interpretation

(1) This Order may be cited as the Income Tax (Indexation) Order 2008 and shall come into force on 6th April 2008.

(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 year 2008-09

(1) The amounts specified in the sections mentioned in subsection (1) of section 257C (indexation of allowances) are replaced for the year 2008-09 with the amounts specified in paragraphs (2) to (5) below.

(2) The amount specified in section 256B (the minimum amount) is £2,540.

(3) The amounts specified in section 257 (personal allowance) are—

(a) in subsection (1) (personal allowance for those aged under 65) £5,435;

(b) in subsection (2) (personal allowance for those aged 65 to 74) £7,850;

(c) in subsection (3) (personal allowance for those aged 75 and over) £8,000;

(d) in subsection (5) (adjusted net income limit) £21,800.

(4) The amounts specified in section 257A (married couple’s allowance: marriages before 5 December 2005) are—

(a) in subsection (2) (married couple’s allowance: one spouse aged less than 75 and born before 6th April 1935) £6,535;

(b) in subsection (3) (married couple’s allowance: one spouse aged 75 or over) £6,625;

(c) in subsection (5) (adjusted net income limit) £21,800.

(5) The amounts specified in section 257AB (marriages and civil partnerships on or after 5 December 2005) are—

(a) in subsection (2)(a) (married couple’s allowance: one spouse or civil partner aged 75 or over) £6,625;

(b) in subsection (2)(b) (married couple’s allowance: one spouse or civil partner aged less than 75 and born before 6th April 1935) £6,535;

(c) in subsection (4) (adjusted net income limit) £21,800.

Section 3 Indexation of blind person’s allowance for the year 2008-09

The amount specified in section 265(1) (blind person’s allowance) is replaced for the year 2008-09 with the amount of £1,800.