Statutory Instrument 1987 No. 434

The Income Tax (Indexation) Order 1987

---

© Crown Copyright 1987

Statutory Instruments printed from this website are printed under the superintendence and authority of the Controller of HMSO being the Queen's Printer of Acts of Parliament.

The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

It should be noted that the right to reproduce the text of Statutory Instruments does not extend to the Queen's Printer imprints which should be removed from any copies of the Statutory Instrument which are issued or made available to the public. This includes reproduction of the Statutory Instrument on the Internet and on intranet sites. The Royal Arms may be reproduced only where they are an integral part of the original document.

The text of this Internet version of the Statutory Instrument which is published by the Queen's Printer of Acts of Parliament has been prepared to reflect the text as it was Made. A print version is also available and is published by The Stationery Office Limited as the The Income Tax (Indexation) Order 1987, ISBN 011076434X. The print version may be purchased by clicking here. Braille copies of this Statutory Instrument can also be purchased at the same price as the print edition by contacting TSO Customer Services on 0870 600 5522 or e-mail:customer.services@tso.co.uk.

Further information about the publication of legislation on this website can be found by referring to the Frequently Asked Questions.

To ensure fast access over slow connections, large documents have been segmented into "chunks". Where you see a "continue" button at the bottom of the page of text, this indicates that there is another chunk of text available.

1987 No. 434

INCOME TAX

The Income Tax (Indexation) Order 1987

The Treasury, in pursuance of section 24(9) of the Finance Act 1980^[1] , hereby makes the following Order:

    1.    This Order may be cited as the Income Tax (Indexation) Order 1987.

    2.—(1)  The amounts which, unless Parliament otherwise determines, will be treated by virtue of section 24 of the Finance Act 1980 as specified for the year 1987—88 in section 32 of the Finance Act 1971^[2] and section 8 of the Income and Corporation Taxes Act 1970^[3] are as follows.

    (2)  In section 32 of the said Act of 1971 (basic rate limit and higher rate bands)—
 (a) the basic rate limit £17,900;
 (b) the higher rate bands—

Band	Part of total income in excess of basic rate limit
First ..........	The first £3,200
Second ..........	The next £5,400
Third ..........	The next £8,200
Fourth ..........	The next £8,200
Fifth ..........	The remainder.


    (3)  In section 8 of the said Act of 1970 (personal allowances)—
 (a) subsection (1)(a) (married) £3,795;
 (b) subsection (1)(b) and (2) (single and wife's earned income relief) £2,425;
 (c) subsection (1A)(a) and (b) (age allowance) £4,675 and £2,960;
 (d) subsection (1B) (income limit for age allowance) £9,800.

Tim Sainsbury

Michael Neubert

Two of the Lords Commissioners of Her Majesty's Treasury

17th March 1987

Section 24 of the Finance Act 1980 provides that the Treasury shall by order made by statutory instrument before 6th April 1987 specify the amounts which by virtue of that section shall, unless Parliament otherwise determines, be treated as specified for the year 1987—88. These are the thresholds for the higher rates of tax — the basic rate limit and the higher rate bands (section 32, Finance Act 1971, as amended by section 17 of, and Schedule 7 to, the Finance Act 1984 — abolition of investment income surcharge for 1984—85 and subsequent years of assessment) and the personal allowances (section 8, Income and Corporation Taxes Act 1970). These amounts are increased in accordance with the percentage increase in the retail prices index for December 1986 over that for December 1985. The "retail prices index" is defined in section 24(8) as "the general index of retail prices (for all items) published by the Department of Employment" .

The retail prices index for December 1986 is 393.0 and for December 1985 378.9 (based on January 1974 as 100). (Table 6.4 of the Department of Employment Gazette, February 1987). This Order specifies the amounts which take account of that increase. They will have effect for income tax for the year 1987—88 unless Parliament otherwise determines.

[1] 1980 c. 48; section 24 was amended by the Finance Act 1984 (c. 43), section 17(2) and Schedules 7 and 23 (Pt. VI). back

[2] 1971 c. 68; section 32 was amended by section 24(2) of the Finance Act 1980 (c. 48) and by the Finance Act 1984, section 17(2) and Schedules 7 and 23 (Pt. VI). back

[3] 1970 c. 10; section 8 was amended by section 31(1) of the Finance (No. 2) Act 1975 (c. 45). back