Part 1: Principal rates etc. Section 3: Personal Allowance and the National Minimum Wage Details of the section
Subsection (1), (2) and (3) replaces the consumer prices index (CPI) with the national minimum wage (NMW) in section 35(1). It applies in a tax year when the personal allowance is more than £12,500 and sets out that the personal allowance will be linked to the annual equivalent of the NMW at the relevant rate for an individual working 30 hours per week. Where this applies, the increased amounts must be set in a Treasury Order before the start of the tax year.