PART 1Direct taxes
Income tax rates, allowances and limits
5Basic rate limit and personal allowance
1
For the tax years 2019-20 and 2020-21, the amount specified in section 10(5) of ITA 2007 (basic rate limit) is “£37,500”.
2
For the tax years 2019-20 and 2020-21, the amount specified in section 35(1) of ITA 2007 (personal allowance) is “£12,500”.
3
In consequence of the amendment made by subsection (2), omit section 4 of F(No.2)A 2015 (which has effect only if the personal allowance is less than £12,500).
4
Omit the following (which relate to the link between the personal allowance and the national minimum wage)—
a
sections 57(8), 57A and 1014(5)(b)(iia) of ITA 2007, and
b
section 3 of F(No.2)A 2015.
5
In consequence of the provision made by this section—
a
section 21 of ITA 2007 (indexation of basic rate limit and starting rate limit for savings) does not apply in relation to the basic rate limit, and
b
section 57 of ITA 2007 (indexation of allowances) does not apply in relation to the amount specified in section 35(1) of that Act,
for the tax years 2019-20 and 2020-21.