uksi/2016/1175 — The Income Tax (Indexation) Order 2016

2016 No. 1175 Income Tax The Income Tax (Indexation) Order 2016 Made 5th December 2016 The Treasury, in exercise of the powers conferred by section 57(6) of the Income Tax Act 2007 , make the following Order: Citation and interpretation 1 1 This Order may be cited as the Income Tax (Indexation) Order 2016. 2 In this Order, references to sections are references to sections of the Income Tax Act 2007. Indexation of allowances for the tax year 2017-18 2 For the tax year 2017-18— a the amount specified in section 38(1) (blind person’s allowance) is replaced with “£2,320”; b the amount specified in section 43 (tax reductions for married couples and civil partners: the minimum amount) is replaced with “£3,260”; c the amount specified in section 45(3)(a) (married couple’s allowance: marriages before 5 December 2005) is replaced with “£8,445”; d the amount specified in section 46(3)(a) (married couple’s allowance: marriages and civil partnerships on or after 5 December 2005) is replaced with “£8,445”; e the amounts specified in sections 45(4) and 46(4) (adjusted net income limit) are replaced with “£28,000”. Andrew Griffiths David Evennett Two of the Lords Commissioners of Her Majesty’s Treasury 5th December 2016 EXPLANATORY NOTE (This note is not part of the Order) This Order fulfils the indexation requirement in section 57 of the Income Tax Act 2007(c. 3) that certain allowances and limits are increased by reference to the Consumer Prices Index. These increases have effect for the 2017-18 tax year. A Tax Information and Impact Note has not been prepared for this instrument as it gives effect to previously announced policy and relates to a predetermined indexation formula.