Section 12B | Individual's entitlement to a savings allowance

(1)Subsections (2) to (4) determine the amount of an individual's savings allowance for a tax year.

(2)If any of the individual's income for the year is additional-rate income, the individual's savings allowance for the year is nil.

(3)If—

(a)any of the individual's income for the year is higher-rate income, and

(b)none of the individual's income for the year is additional-rate income,

the individual's savings allowance for the year is £500.

(4)If none of the individual's income for the year is higher-rate income, the individual's savings allowance for the year is £1,000.

(5)The Treasury may by regulations substitute a different amount for the amount for the time being specified in subsection (2), (3) or (4); and regulations under this subsection that have effect for a tax year may be made at any time before the end of that tax year.

(6)If regulations under subsection (5) reduce any amount, the regulations may not be made unless a draft of the instrument containing them (whether alone or together with regulations under subsection (5) which increase any amount) has been laid before, and approved by a resolution of, the House of Commons.

(7)Section 1014(4) (negative procedure) does not apply to regulations under subsection (5) which increase any amount if—

(a)the instrument containing them also contains regulations under subsection (5) which reduce any amount, and

(b)a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

(8)For the purposes of this section—

(a)each of the following is “additional-rate income”—

(i)income on which income tax is charged at the additional rate , property additional rate , default additional rate or dividend additional rate,

(ii)income on which income tax would be charged at the additional rate , or default additional rate, but for section 12A (income charged at savings nil rate),

(iii)income on which income tax would be charged at the dividend additional rate but for section 13A (income charged at dividend nil rate), and

(iv)income of an individual who is a Scottish taxpayer or Welsh taxpayer which would, if the individual were not a Scottish taxpayer or Welsh taxpayer (as the case may be), be income on which income tax is charged at the additional rate , property additional rate or default additional rate, and

(b)each of the following is “higher-rate income”—

(i)income on which income tax is charged at the higher rate , property higher rate , default higher rate or dividend upper rate,

(ii)income on which income tax would be charged at the higher rate , or default higher rate, but for section 12A (income charged at savings nil rate),

(iii)income on which income tax would be charged at the dividend upper rate but for section 13A (income charged at dividend nil rate), and

(iv)income of an individual who is a Scottish taxpayer or Welsh taxpayer which would, if the individual were not a Scottish taxpayer or Welsh taxpayer (as the case may be), be income on which income tax is charged at the higher rate , property higher rate or default higher rate.