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ITA 2007 is amended as follows.

For section 7 (savings rate) substitute—

“7 The starting rate for savings

The starting rate for savings is 10%.”

(1)     Section 10 (income charged at main rates: individuals) is amended as follows.

(2)     Omit subsection (1).

(3)     For subsection (2) substitute—

“(2)     Income tax on an individual's income up to the basic rate limit is charged at the basic rate (except to the extent that, in accordance with section 12, it is charged at the starting rate for savings).”

(4)     In subsection (4), omit the entry relating to section 12.

(5)     Insert at the end—

“(6)     The basic rate limit is increased in some circumstances: see—

(7)     See section 21 for indexation of the basic rate limit.”

(6)     Accordingly, in the heading, omit “starting,”.

In section 11(2) (income charged at the basic rate: persons other than individuals), omit the reference to section 12.