Commentary on Sections Overview Overview Section 6: The starting rate, basic rate and higher rate
37.This section sets out the main rates at which income tax is charged. It is based on section 1(2) of ICTA.
38.With some exceptions, notably savings and dividend income (see sections 12 and 13), any income of an individual is taxed at either the starting rate, the basic rate or the higher rate, depending on the level of the individual’s income.
39.Subsection (2) specifies that the main rates are determined each year by Parliament.
40.Other rates at which income tax is charged do not have to be specified by Parliament annually and are instead set out in the sections signposted by subsection (3).