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(a) during the period of 4 weeks, or in the case of an employee paid monthly, 1 month, from the day on which the employee first receives any payment of emoluments from the employer, the employer shall deduct tax at the standard rate of tax and, where appropriate, the higher rate of tax on the basis that the amount of the standard rate cut-off point is an amount per week equal to one fifty-second of the amount chargeable to tax at the standard rate specified in Part 1 of the Table to section 15 of the Act, as it applies for that year, or if the employee is paid monthly, one-twelfth of that amount, and

“higher rate of tax” means the rate of income tax known by that description and provided for in section 15 of the Act;

“standard rate of tax” means the rate of income tax known by that description and provided for in section 15 of the Act;

(c) Subject to subsection (4), Part 1 of the Table to section 15 shall apply to each of the spouses concerned.

(4) Where the part of the taxable income of a spouse chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of the other spouse and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the “appropriate part”) in respect of which the first-mentioned spouse is so chargeable to tax at that rate, the part of taxable income of the other spouse which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned spouse chargeable to tax at the standard rate is less than the appropriate part.

(4) Where the part of the taxable income of a spouse chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of the other spouse and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the “appropriate part”) in respect of which the first-mentioned spouse is so chargeable to tax at that rate, the part of taxable income of the other spouse which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned spouse chargeable to tax at the standard rate is less than the appropriate part.

(c) Subject to subsection (4), Part 1 of the Table to section 15 shall apply to each of the civil partners concerned.

(4) Where the part of the taxable income of a civil partner chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of his or her civil partner and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the “appropriate part”) in respect of which the first-mentioned civil partner is so chargeable to tax at that rate, the part of taxable income of the civil partner other than the first-mentioned civil partner which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned civil partner chargeable to tax at the standard rate is less than the appropriate part.

(4) Where the part of the taxable income of a civil partner chargeable to tax in accordance with subsection (2)(c) at the standard rate is less than that of his or her civil partner and is less than the part of taxable income specified in column (1) of Part 1 of the Table to section 15 (in this subsection referred to as the “appropriate part”) in respect of which the first-mentioned civil partner is so chargeable to tax at that rate, the part of taxable income of the civil partner other than the first-mentioned civil partner which by virtue of subsection (2)(c) is to be charged to tax at the standard rate shall be increased, to an amount not exceeding the part of taxable income specified in column (1) of Part 3 of the Table to section 15 in respect of which an individual to whom that Part applies is so chargeable at that rate, by the amount by which the taxable income of the first-mentioned civil partner chargeable to tax at the standard rate is less than the appropriate part.

(a) notwithstanding section 15(2), income tax shall not be chargeable in respect of that distribution at a rate in excess of the standard rate 25 per cent, and

(2) Notwithstanding section 15, where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate at which tax would have been deducted, from that interest, if a declaration under subsection (1A) or (1B) of section 256 subsection (1A), (1B), or (1C) of section 256 had not been made.

(2)(a) Notwithstanding section 15 and subject to paragraph (aa), where the taxable income of an individual includes—

(aa) Notwithstanding paragraph (a), where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 959A) for that year, then the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.

“chargeable tax”, in relation to an individual for a year of assessment, means the amount of income tax to which that individual is chargeable for that year of assessment under section 15 in respect of his or her total income for that year including, in the case of an individual assessed to tax in accordance with the provisions of section 1017 or 1031C, the total income, if any, of the individual’s spouse or civil partner, as the case may be;

“higher rate”, in relation to tax, means the rate of tax known by that description and provided for in section 15;

“standard rate”, in relation to tax, means the rate of tax known by that description and provided for in section 15;

(8) Where for any year of assessment a tax credit is granted to an individual under this section, the individual shall not also be entitled to the benefit of the provision contained in section 15(3) but the individual may elect by notice in writing to the inspector to have the benefit under the said section granted instead of the tax credit granted under this section.

(6) Subject to subsections (8) and (9), the part of taxable income specified in the first row of column (1) of Parts 1, 2 and 3 of the Table to section 15 shall be increased by—

(a) subsection (3) of section 15 applies, and

the amount specified in paragraph (i) of section 15(3) shall be increased by—

A is the amount by which the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 is increased in accordance with subsection (6), and

B is the amount, if any, by which the amount specified in paragraph (i) of section 15(3) is increased in accordance with subsection (7),

the aggregate amount of the increase to the part of taxable income specified in the first row of column (1) of Part 1, 2 or 3, as the case may be, of the Table to section 15 effected by the application of subsection (6) and, to the extent that it is applicable, subsection (7), shall be an amount equal to the amount of the emoluments paid to the individual concerned on the relevant date.

(i) the rate of income tax to be charged on the income represented by the payment, where the payment is not made in consideration of the disposal, in whole or in part, of the foreign life policy, shall, notwithstanding section 15, be—

(ii) in the case of a foreign life policy which is a personal portfolio life policy and the income represented by the payment is not correctly included in a return made by the person, the income shall, notwithstanding section 15, be charged to income tax at the rate of 80 per cent,

then, notwithstanding section 594, the amount of the gain shall be treated as an amount of income chargeable to tax under Case IV of Schedule D, and where the person is not a company the rate of income tax to be charged on that income shall, notwithstanding section 15, be—

(i) the rate of income tax to be charged on the income represented by the payment, where the payment is not made in consideration of the disposal of an interest in the offshore fund, shall, notwithstanding section 15, be—

(ii) in the case of an offshore fund which is a personal portfolio investment undertaking and the income represented by the payment is not correctly included in a return made by the person, the income shall, notwithstanding section 15, be charged to income tax at the rate of 80 per cent,

(b) where the person is not a company, the rate of income tax to be charged on that income shall, notwithstanding section 15, be—