
1 
This Order may be cited as the Income Tax (Indexation) Order 1987.
2 

(1) The amounts which, unless Parliament otherwise determines, will be treated by virtue of section 24 of the Finance Act 1980 as specified for the year 1987—88 in section 32 of the Finance Act 1971 and section 8 of the Income and Corporation Taxes Act 1970 are as follows.
(2) In section 32 of the said Act of 1971 (basic rate limit and higher rate bands)—
(a) the basic rate limit £17,900;
(b) the higher rate bands—

Band Part of total income in excess of basic rate limit
First  The first £3,200
Second  The next £5,400
Third  The next £8,200
Fourth  The next £8,200
Fifth  The remainder.
(3) In section 8 of the said Act of 1970 (personal allowances)—
(a) subsection (1)(a) (married) £3,795;
(b) subsection (1)(b) and (2) (single and wife’s earned income relief) £2,425;
(c) subsection (1A)(a) and (b) (age allowance) £4,675 and £2,960;
(d) subsection (1B) (income limit for age allowance) £9,800.
Tim Sainsbury
Michael Neubert
Two of the Lords Commissioners of Her Majesty’s Treasury
17th March 1987