Finance Act, 2001

Chapter 2

Income Tax

Tax credits.

2.—(1) Where an individual is entitled under a provision of the Principal Act mentioned in column (1) of the Table to this subsection to have the income tax to be charged on the individual, other than in accordance with the provisions of section 16(2) of the Principal Act, reduced for the year of assessment 2001 or any subsequent year of assessment and the amount of the reduction would, but for this section, be an amount which is the lesser of—

(a) an appropriate percentage of an amount (in this section referred to as the “standard-rated allowance”) specified in column (2) of that Table, and

(b) the amount which reduces that liability to nil,

the amount of the reduction in accordance with paragraph (a) shall, in lieu of being the standard-rated allowance, be the amount of the tax credit specified in column (3) or column (4), as may be appropriate, of the Table opposite the mention of the amount in column (2).

TABLE

Statutory Provision

Standard rated allowance for the year

Tax credit for the year 2001

Tax credit for the year 2002 and subsequent years

(1)

(2)

(3)

(4)

Section 461

(married person)

...

...

£9,400

£1,628

€2,794

(widowed person bereaved in the year of assessment)

...

£9,400

£1,628

€2,794

(single person)

...

...

£4,700

£814

€1,397

Section 461A

(additional relief for certain widowed persons)

£1,000

£148

€254

Section 462

(additional relief for single parents)

...

...

...

£4,700

£814

€1,397

Section 463

(additional relief for widowed parent following death of spouse)

(1st year)

...

...

...

£10,000

£2,000

€2,540

(2nd year)

...

...

...

£8,000

£1,600

€2,032

(3rd year)

...

...

...

£6,000

£1,200

€1,524

(4th year)

...

...

...

£4,000

£800

€1,016

(5th year)

...

...

...

£2,000

£400

€508

Section 464

(aged person)

(married person)

...

...

£1,600

£238

€408

(single person)

...

...

£800

£119

€204

Section 465

(incapacitated child)

...

...

£1,600

£238

€408

Section 466

(dependent relative)

...

...

£220

£33

€56

Section 466A

(home carer)

...

...

...

£3,000

£444

€762

Section 468

(blind person)

...

...

£3,000

£444

€762

(both spouses blind)

...

...

£6,000

£888

€1,524

Section 472

(employee)

...

...

...

£1,000

£296

€508

(2) Section 7 of the Finance Act, 1999 , and sections 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 and 12 of the Finance Act, 2000 , shall apply subject to the provisions of this section.

(3) Schedule 1 shall have effect for the purposes of supplementing subsection (1).