Income Tax Act 2007 section 20

The starting rate limit and the basic rate limit

Section 20 sets out the starting rate limit and the basic rate limit for income tax, establishing the thresholds at which different rates of tax apply to taxable income.

• The section defines two key income thresholds: the starting rate limit and the basic rate limit
• These limits determine the bands of income to which the starting rate and basic rate of income tax apply
• The figures used in the Act are those for the 2006–07 tax year, with subsequent years updated by indexation order
• The provision derives from the original rules in section 1(2) to (3) of the Income and Corporation Taxes Act 1988