1. This clause specifies the amounts for the personal allowances in 1999-00 for people aged 65 to 74 and 75 or more. These age-related allowances are to be increased by more than indexation, and are to be set at £5,720 and £5,980, respectively.

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2. Sub-section (1) specifies sets the amounts for the age-related personal allowances in 1999-00 specified at £5,720 for the amount in sections 257(2) (personal allowance for people aged 65-74) and at £5,980 for the amount in section 257(3) ICTA 1988 (personal allowance for people aged 75 or more) of the Income and Corporation Taxes Act (ICTA) 1988.

3. Sub-section (2) disapplies statutory indexation, which would otherwise have increased the age-related personal allowances in line with the increase in the Retail Prices Index in the year to September 1998.

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4. This clause increases the personal allowance for people aged 65-74 by £310 (£130 more than indexation). It increases the personal allowance for people aged 75 or more by £380 (£200 more than indexation).

5. The additional allowances for older people are withdrawn at the rate of £1 of allowance for every £2 of income above the income limit of £16,800, until the basic personal allowance is reached. The income limit has been increased by £600 to £16,800 for 1999-00, in line with indexation.