Finance Act, 1981

PART I

Income Tax, Resource Tax and Corporation Tax

Chapter I

Income Tax

Amendment of provisions relating to exemption from income tax.

1.—As respects the year 1981-82 and subsequent years of assessment, the Finance Act, 1980 , is hereby amended—

(a) in section 1—

(i) in paragraph (b) of subsection (1), by the substitution of “a sum equal to twice the specified amount” for “£5,000”, and

(ii) in subsection (2), by the substitution of “£4,000” for “£3,400” and of “£2,000” for “£1,700”,

and

(b) in section 2—

(i) in subsection (3), by the substitution of “a sum equal to twice the specified amount” for “£10,000”, and

(ii) in subsection (6), by the substitution of “£4,600” for “£4,000”, of “£5,600” for “£5,000”, of “£2,300” for “£2,000” and of “£2,800” for “£2,500”, and the said paragraph (b) and the said subsections (2), (3) and (6), as so amended, are set out in the Table to this section.

TABLE

(b) an individual makes a claim for the purpose, makes a return in the prescribed form of his total income for that year and proves that it does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 60 per cent. of the amount by which his total income exceeds the specified amount, reduced to that sum.

(2) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in section 138 (a) of the Income Tax Act, 1967 , £4,000, and

(b) in any other case, £2,000.

(3) Where an individual to whom this section applies proves that his total income for a year of assessment for which this section applies does not exceed a sum equal to twice the specified amount, he shall be entitled to have the amount of income tax payable in respect of his total income for that year, if that amount would, but for the provisions of this subsection, exceed a sum equal to 60 per cent, of the amount by which his total income exceeds the specified amount, reduced to that sum.

(6) In this section “the specified amount” means—

(a) in a case where the individual would, apart from this section, be entitled to a deduction specified in paragraph (a) of the said section 138, £4,600:

Provided that, if at any time during the year of assessment either the individual or his spouse was of the age of seventy-five years or upwards, “the specified amount” means £5,600;

(b) in any other case, £2,300:

Provided that, if at any time during the year of assessment the individual was of the age of seventy-five years or upwards, “the specified amount” means £2,800.