Finance Act, 1991

FIRST SCHEDULE

Amendment of Enactments

Sections 2 and 3 .

PART I

Amendments Consequential on Changes in Rates of Tax

1. Section 1 (1) of the Income Tax Act, 1967 , is, in relation to income tax for the year 1991-92 and subsequent years of assessment, hereby amended—

(i) by the substitution of the following definition for the definition of “higher rates” (inserted by the Finance Act, 1984 ):

“‘higher rates’, in relation to tax, means the rates of tax, known by that description, provided for in section 2 of the Finance Act, 1991;”,

and

(ii) by the substitution of the following definition for the definition of “standard rate” (inserted by the Finance Act, 1984 ):

“‘standard rate’, in relation to tax, means the rate of tax, known by that description, provided for in section 2 of the Finance Act, 1991;”.

2. (1) The reference in subsection (1) of section 3 of the Finance Act, 1974 , to the rate of 35 per cent. shall be construed, and be always deemed to have been construed, as respects the year 1989-90, as a reference to the rate of 32 per cent. and, as respects the year 1990-91, as a reference to the rate of 30 per cent.

(2) Section 3 of the Finance Act, 1974 , shall not apply or have effect for the year 1991-92 or any subsequent year of assessment.

PART II

Amendments Consequential on Changes in Personal Reliefs

The Income Tax Act, 1967 , is hereby amended in accordance with the following provisions:

(a) in section 138—

(i) in paragraph (a), by the substitution of “£4,200” for “£4,100” (inserted by the Finance Act, 1988 ),

(ii) in paragraph (b) (as amended by the Finance Act, 1988 ), by the substitution of “£2,600” for “£2,550” and of “£4,200” for “£4,100”, and

(iii) in paragraph (c), by the substitution of “£2,100” for “£2,050” (inserted by the Finance Act, 1988 ),

and

(b) in section 138A (2) (inserted by the Finance Act, 1985 ), by the substitution of “£1,600” for “£1,550” (inserted by the Finance Act, 1988 ) and of “£2,100” for “£2,050” (inserted by the Finance Act, 1988 ).