Finance Act, 1996

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PART I

Income Tax, Corporation Tax and Capital Gains Tax

Chapter I

Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year of assessment 1996-97 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in section 1, by the substitution, in subsection (2) (inserted by the Finance Act, 1989 ), of “£7,800” and “£3,900”, respectively, for “£7,400” and “£3,700” (inserted by the Finance Act, 1995 ), and

(b) in section 2, by the substitution, in subsection (6) (inserted by the Finance Act, 1989 )—

(i) of “£9,000” and “£10,200”, respectively, for “£8,600” and “£9,800” (inserted by the Finance Act, 1995 ), in paragraph (a), and

(ii) of “£4,500” and “£5,100”, respectively, for “£4,300” and “£4,900” (inserted by the Finance Act, 1995 ), in paragraph (b),

and the said subsection (2) of the said section 1 and the said subsection (6) of the said section 2, as so amended, are set out in the Table to this section.

TABLE

(2) In this section “the specified amount” means, subject to subsection (3)—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £7,800, and

(b) in any other case, £3,900.

(6) In this section “the specified amount” means, subject to subsection (3) of section 1—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £9,000:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £10,200, and

(b) in any other case, £4,500:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £5,100.