Income Tax Act 2007 section 7A

The savings basic, higher and additional rates

Section 7A establishes that Parliament determines the income tax rates that apply specifically to savings income at the basic, higher and additional rate levels for each tax year.

• Savings income is taxed at its own specific set of rates, separate from the main income tax rates.
• There are three tiers of savings rates: the savings basic rate, the savings higher rate and the savings additional rate.
• These rates are set by Parliament for each individual tax year.
• This provision was introduced by the Finance Act 2016, reflecting the separation of savings rates from the main income tax rates.