Introduction Details of the Section
2.Subsections (1) and (2) amend section 6 of the Income Tax Act 2007 (ITA) (the basic and higher rate). They add the additional rate to the main rates at which income tax is charged.
3.Subsection (3) adds a reference to the dividend additional rate in section 6 of ITA.
4.Subsection (4) amends section 9 of ITA (the trust rate and dividend trust rate) which sets out the trust and dividend rates that apply to the income of certain trusts (see background note). The trust rate will be increased to 50 per cent from 40 per cent, and the dividend trust rate will be increased to 42.5 per cent from 32.5 per cent.
5.Subsection (5) introduces Schedule 2 to this Act.
6.Subsection (6) provides that the amendments made by this section are effective for 2010-11 and subsequent years.