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provide
that income tax is not chargeable on the earnings of persons living
in |
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Be
it enacted by the Queen’s most Excellent Majesty,
by and with the advice and |
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consent of the Lords Spiritual
and Temporal, and Commons, in this present |
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Parliament assembled, and
by the authority of the same, as follows:— |
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1 |
Amendment
of the Income and Corporation Taxes Act 1988 |
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(1) |
The Income
and Corporation Taxes Act 1988 (c. 1) is amended as
follows. |
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(2) |
In section 1 (charge to income
tax)— |
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(a) |
in subsection (1), at the
beginning, insert the words “Subject to |
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5 |
(b) |
after subsection (1), insert— |
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“(1A) |
No income tax may be charged
in accordance with the Income |
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Tax
Acts on the earnings of a person living in poverty. |
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(1B) |
A person is ‘living
in poverty’ for the purposes of subsection |
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(1A)
if his earnings for a year in respect of which income tax |
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might
otherwise fall to be charged on those earnings is sixty per |
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cent
or less of the median disposable income for that year. |
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(1C) |
For the purposes of subsection
(1B), ‘the median disposable |
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income
for that year’ has the meaning given by regulations |
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made
by the Office of National Statistics. |
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15 |
(1D) |
The following provisions
of this Act are subject to subsection |
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(3) |
After section 1, insert— |
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“1ZA |
Regulations
made by the Office of National Statistics under section |
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20 |
(1) |
The power of the Office
of National Statistics to make regulations under |
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section
1(1C) shall be exercisable by statutory instrument, and the |
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Statutory
Instruments Act 1946 is to apply in relation to those powers |
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as
if the Office of National Statistics were a Minister of the Crown. |
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(2) |
Where an instrument is
made under the power under section 1(1C), the |
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Office
of National Statistics must, immediately after the instrument
is |
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made,
send it to the Chancellor of the Exchequer for laying before the
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5 |
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(3) |
The Documentary Evidence
Act 1868 (proof of orders and regulations |
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etc.)
shall have effect as if the Office of National Statistics were— |
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(a) |
included in the first column
of the Schedule to that Act; and |
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(b) |
mentioned in the second column
of that Schedule.” |
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2 |
Short
title and commencement |
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(1) |
This Act may be cited as
the Income Tax (Earnings Exemption for Persons |
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Living in Poverty) Act 2005. |
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(2) |
This Act shall come into
force on 6 April 2007. |
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