- Latest available (Revised)
- Original (As enacted)
This is the original version (as it was originally enacted).
(1)Section 1A of the Taxes Act 1988 (application of lower rate to income from savings and distributions) shall be amended in accordance with subsections (2) to (4) below.
(2)In subsection (1) (certain savings and distribution income to be charged at the lower rate to the exclusion of basic rate) for “lower rate” there shall be substituted “rate applicable in accordance with subsection (1A) below”.
(3)After subsection (1) there shall be inserted—
“(1A)The rate applicable in accordance with this subsection is—
(a)in the case of income chargeable under Schedule F, the Schedule F ordinary rate;
(b)in the case of equivalent foreign income falling within subsection (3)(b) below and chargeable under Case V of Schedule D, the Schedule F ordinary rate; and
(c)in the case of any other income, the lower rate.”
(4)For subsection (5) (income to which section 1A applies to be treated as the highest part of a person’s income) there shall be substituted—
“(5)For the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts—
(a)so much of any person’s income as comprises income to which this section applies shall be treated as the highest part of his income; and
(b)so much of that part as consists of—
(i)income chargeable under Schedule F (if any), and
(ii)equivalent foreign income falling within subsection (3)(b) above and chargeable under Case V of Schedule D (if any),
shall be treated as the highest part of that part.”
(5)After section 1A of the Taxes Act 1988 there shall be inserted—
(1)In the case of so much of an individual’s income which consists of—
(a)income chargeable under Schedule F (if any), and
(b)equivalent foreign income falling within section 1A(3)(b) and chargeable under Case V of Schedule D (if any),
as is income falling within section 1(2)(b), income tax shall, by virtue of this subsection, be charged at the Schedule F upper rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(b).
(2)In relation to any year of assessment for which income tax is charged—
(a)the Schedule F ordinary rate is 10 per cent., and
(b)the Schedule F upper rate is 32.5 per cent.,
or, in either case, such other rate as Parliament may determine.”
(6)This section has effect in relation to distributions made on or after 6th April 1999.
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: