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Grant certain duties, to alter other duties, and to amend the law relating to the |
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National Debt and the Public Revenue, and to make further provision in |
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WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the |
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United Kingdom in Parliament assembled, towards raising the necessary |
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supplies to defray Your Majesty’s public expenses, and making an addition to the |
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public revenue, have freely and voluntarily resolved to give and to grant unto Your |
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Majesty the several duties hereinafter mentioned; and do therefore most humbly |
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beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most |
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Excellent Majesty, by and with the advice and consent of the Lords Spiritual and |
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Temporal, and Commons, in this present Parliament assembled, and by the authority |
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of the same, as follows:— |
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Charges, rates, allowances, reliefs etc |
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1 | Charge and main rates for 2008-09 |
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(1) | Income tax is charged for the tax year 2008-09. |
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(a) | the basic rate is 20%, and |
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(b) | the higher rate is 40%. |
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2 | Personal allowances for those aged 65 and over |
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(1) | For the tax year 2008-09— |
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(a) | the amount specified in section 36(1) of ITA 2007 and section 257(2) of |
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ICTA (personal allowance for those aged 65 to 74) is replaced with |
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(b) | the amount specified in section 37(1) of ITA 2007 and section 257(3) of |
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ICTA (personal allowance for those aged 75 and over) is replaced with |
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(a) | section 57 of ITA 2007 (indexation), so far as relating to the amounts |
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specified in sections 36(1) and 37(1) of that Act, and |
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(b) | section 257C of ICTA, so far as relating to the amounts specified in |
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section 257(2) and (3) of that Act, |
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| (indexation) do not apply for the tax year 2008-09. |
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3 | Abolition of starting and savings rates and creation of starting rate for savings |
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(1) | Section 6 of ITA 2007 (rates at which income tax is charged) is amended as |
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(2) | In subsection (1), omit paragraph (a). |
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(3) | In subsection (2), omit “starting rate,”. |
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(4) | In subsection (3), for paragraph (a) substitute— |
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“(a) | section 7 (starting rate for savings),”. |
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(5) | Accordingly, in the heading omit “starting rate,”. |
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(6) | The amendments made by this section have effect for the tax year 2008-09 and |
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(7) | Schedule 1 contains provision in connection with— |
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(a) | the abolition of the starting rate and the savings rate, and |
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(b) | the creation of the starting rate for savings. |
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4 | Charge and main rates for financial year 2009 |
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(1) | Corporation tax is charged for the financial year 2009. |
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(2) | For that year the rate of corporation tax is— |
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(a) | 28% on profits of companies other than ring fence profits, and |
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(b) | 30% on ring fence profits of companies. |
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(3) | In subsection (2) “ring fence profits” has the same meaning as in Chapter 5 of |
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Part 12 of ICTA (see section 502(1) and (1A)). |
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5 | Small companies’ rates and fractions for financial year 2008 etc |
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(1) | For the financial year 2008 the small companies’ rate is— |
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(a) | 21% on profits of companies other than ring fence profits, and |
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(b) | 19% on ring fence profits of companies. |
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(2) | For the financial year 2008 the fraction mentioned in section 13(2) of ICTA is— |
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(a) | 7/400ths in relation to profits of companies other than ring fence profits |
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(“the standard fraction”), and |
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(b) | 11/400ths in relation to ring fence profits of companies (“the ring fence |
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(3) | Subsections (3) to (7) of section 3 of FA 2007 (operation of section 13(2) of ICTA |
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in relation to company profits consisting of both ring fence profits and other |
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profits) apply in relation to profits of a company for an accounting period any |
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part of which falls in the financial year 2008, or any subsequent financial year, |
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as in relation to those for an accounting period any part of which falls in the |
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(4) | In this section “ring fence profits” has the same meaning as in Chapter 5 of Part |
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12 of ICTA (see section 502(1) and (1A)). |
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(1) | In TCGA 1992, for section 4 substitute— |
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“4 | Rate of capital gains tax |
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The rate of capital gains tax is 18%.” |
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(2) | Schedule 2 contains further provision for and in connection with the reform of |
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(3) | The amendment made by subsection (1) has effect for the tax year 2008-09 and |
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Schedule 3 contains provision for and in connection with entrepreneurs’ relief. |
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8 | Transfer of unused nil-rate band etc |
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Schedule 4 contains provisions about the transfer of unused nil-rate band |
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between spouses and civil partners for the purposes of the charge to |
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9 | Rates of alcoholic liquor duty |
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(1) | ALDA 1979 is amended as follows. |
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(2) | In section 5 (rate of duty on spirits), for “£19.56” substitute “£21.35”. |
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(3) | In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute |
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(4) | In section 62(1A) (rates of duty on cider)— |
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(a) | in paragraph (a) (rate of duty per hectolitre in the case of sparkling |
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cider of a strength exceeding 5.5 per cent), for “£172.33” substitute |
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(b) | in paragraph (b) (rate of duty per hectolitre in the case of cider of a |
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strength exceeding 7.5 per cent which is not sparkling cider), for |
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“£39.73” substitute “£43.37”, and |
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(c) | in paragraph (c) (rate of duty per hectolitre in any other case), for |
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“£26.48” substitute “£28.90”. |
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(5) | For the table in Schedule 1 substitute— |
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“Table of rates of duty on wine and made-wine
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Wine or made-wine of a strength not exceeding 22 per cent |
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| | | | | | | | Description of wine or made-wine |
| | | | | | | | | 15 | | | Wine or made-wine of a strength not |
| | | | | | | | | | | | Wine or made-wine of a strength exceeding |
| | | | | | 4 per cent but not exceeding 5.5 per cent |
| | | | | | Wine or made-wine of a strength exceeding |
| | | 20 | | | 5.5 per cent but not exceeding 15 per cent |
| | | | | | | | | | | | Sparkling wine or sparkling made-wine of a |
| | | | | | strength exceeding 5.5 per cent but less than |
| | | | | | | | | 25 | | | Sparkling wine or sparkling made-wine of a |
| | | | | | strength of 8.5 per cent or of a strength |
| | | | | | exceeding 8.5 per cent but not exceeding 15 |
| | | | | | | | | | | | Wine or made-wine of a strength exceeding |
| | | 30 | | | 15 per cent but not exceeding 22 per cent |
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Wine or made-wine of a strength exceeding 22 per cent |
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| | | | | 35 | | | Description of wine or made-wine |
| | | | | | | | | | | | | | | | | | Wine or made-wine of a strength exceeding |
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(6) | The amendments made by this section are treated as having come into force on |
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