Statutory Instruments
2006 No. 3241
income tax
The Income Tax (Indexation) (No.2) Order 2006
Made
6th December 2006
The Treasury make the following Order in exercise of the powers conferred upon them by section 257C(3) of the Income and Corporation Taxes Act 1988( 1 ):
Citation
1. This Order may be cited as the Income Tax (Indexation) (No.2) Order 2006.
Amounts of personal allowance, married couple’s allowance and blind person’s allowance for 2006-07
2. —(1) The amounts, which, unless Parliament otherwise determines, will be treated by virtue of sections 257C(1)( 2 ) and 265(1A) of the Income and Corporation Taxes Act 1988 as specified for the year 2007-08 in sections 257, 257A( 3 ), 257AB( 4 ), and 265( 5 ) of that Act are set out in paragraphs (2) to (4) below.
(2) In section 257 of that Act (personal allowance)—
(a) in subsection (1) (personal allowance) — £5,225;
(b) in subsection (2) (personal allowance — age 65-74) - £7,550;
(c) in subsection (3) (personal allowance — age 75 and over) — £7,690;
(d) in subsection (5) (income limit for age-related allowances) — £20,900.
(3) In section 257A of that Act (married couple’s allowance for couples married before 5th December 2005)—
(a) in subsection (2) (married couple’s allowance — one spouse aged 72 to 74 and born before 6 th April 1935) — £6,285;
(b) in subsection (3) (married couple’s allowance — age 75 and over) — £6,365;
(c) in subsection (5) (income limit for age-related married couple’s allowance) — £ 20,900;
(d) in subsection (5A) (minimum married couple’s allowance) — £2,440.
(4) In section 257AB of that Act (married couple’s allowance (marriages contracted and civil partnerships registered after 5 th December 2005))—
(a) in subsection (2)(a) (married couple’s allowance — age 75 and over) — £6,365;
(b) in subsection (2)(b) (married couple’s allowance — age 72 to 74 and born before 6 th April 1935) — £6,285;
(c) in subsection (4) (income limit for age-related allowances) — £20,900.
(d) in subsection (5) (minimum married couple’s allowance) — £2,440.
(5) In section 265(1) of that Act (blind person’s allowance) — £1,730.
Claire Ward
Dave Watts
Two of the Lords Commissioners of Her Majesty’s Treasury
6th December 2006
1988 c.1 . Sections 257 to 257F were substituted for section 257 by section 33 of the Finance Act 1988 (c.39) with effect from the year 1990-91 and subsequent years of assessment. Section 257C was amended by Part IV of Schedule 19 to the Finance Act 1990 (c.29) , and Part III (10) of Schedule 23 to, the Finance Act 1993 (c.34) , extended by section 56(2) of the Finance Act 1997 (c.16) , and further amended by section 25(3) of the Finance Act 1999 (c.16) and section 27(b) of the Finance Act 2002 (c.23) .
Section 257C was amended by regulation 55 of S.I.2005/3229 .
Sections 257 and 257A as substituted by section 33 of the Finance Act 1988 were amended by section 33 of the Finance Act 1989 (c.26) . Section 257 was further amended by paragraph 13 of Schedule 20 and Part V(10) of Schedule 41 to the Finance Act 1996 (c.8) and section 257A was further amended by paragraph 1 of Schedule 8 to, the Finance Act 1994 (c.9) and by paragraph 14 of Schedule 20 to the Finance Act 1996 and was amended and extended by section 31 of the Finance Act 1999.
Section 257AB was inserted by regulation 52 of the Tax and Civil Partnerships Regulations 2005.
Section 265 was substituted by paragraph 8 of Schedule 3 to the Finance Act 1988 with effect for the year 1990-91 and subsequent years of assessment, and was amended by sections 33(10) and 57(4) of the Finance Act 1989 (c.26) , by paragraph 8 of Schedule 5 and Part VII(1) of Schedule 18 to the Finance (No.2) Act 1992 (c.48) , by paragraph 3 of Schedule 10, paragraph 6 of Schedule 21 and Part V(10) of Schedule 41 to the Finance Act 1996 (c.8) , by section 56 of the Finance Act 1997 (c.16) , by Part III(15) of Schedule 20 to the Finance Act 1999 and by paragraph 8 of Schedule 35 to the Finance Act 2004 (c.12) with effect from 6 April 2006.