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PART III |
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INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX |
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CHAPTER I |
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CHARGE AND RATES |
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Income tax |
| Charge and rates for 2000-01. |
31. Income tax shall be charged for the year 2000-01, and for that year-
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(a) the starting rate shall be 10%, |
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(b) the basic rate shall be 22%, and |
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(c) the higher rate shall be 40%. |
| Extension of starting rate to savings income of individuals. |
32. - (1) Section 1A of the Taxes Act 1988 (application of lower rate or Schedule F ordinary rate to income from savings and distributions) is amended as follows.
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(2) In subsection (1)(b) (income of individuals to which those rates do not apply), after the words "is not" insert "-
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(i) savings income falling within section 1(2)(aa), or
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(3) After subsection (1) insert-
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"(1AA) In subsection (1)(b)(i) above "savings income" means income to which this section applies other than-
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(a) income chargeable under Schedule F, or |
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(b) equivalent foreign income falling within subsection (3)(b) below and chargeable under Case V of Schedule D.". |
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(4) This section has effect for the year 2000-01 and subsequent years and shall be deemed to have had effect for the year 1999-00.
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| Deduction of income tax from foreign dividends. |
33. - (1) In section 4 of the Taxes Act 1988 (construction of references in Income Tax Acts to deduction of tax), after subsection (1A) (which provides for deduction at lower rate from savings and distributions) insert-
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"(1B) To the extent that section 118E (paying and collecting agents: deduction of tax) applies in relation to foreign dividend income-
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(a) subsections (1) and (1A) above shall not apply, and |
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(b) any provision of that section of the kind mentioned in subsection (1) above shall be construed as referring to deduction or payment of income tax at the Schedule F ordinary rate in force for the relevant year of assessment. |
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For this purpose "foreign dividend income" means any such dividend or other distribution of a company not resident in the United Kingdom as would be chargeable under Schedule F if the company were resident in the United Kingdom."
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(2) This section has effect for the year 2000-01 and shall be deemed to have had effect for the year 1999-00.
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| Children's tax credit. |
34. - (1) In section 257AA(2) of the Taxes Act 1988 (which specifies the amount by reference to which the children's tax credit is calculated) for "£4,160" substitute "£4,420".
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(2) This section has effect for the year 2001-02 and subsequent years of assessment.
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Corporation tax |
| Charge and main rate for financial year 2001. |
35. Corporation tax shall be charged for the financial year 2001 at the rate of 30%.
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