1. This clause abolishes the additional personal allowance (APA) from April 2000.

2. The APA is worth the same as the basic married couple's allowance (MCA). It can be claimed by an unmarried person (or by someone who lives with a spouse who is totally incapacitated) if they have a qualifying child resident with them.

3. The abolition of the APA is part of a package of reform of income tax reliefs, under which existing allowances are largely abolished and replaced by a new children's tax credit.

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4. Sub-section (1) provides for the repeal of sections 259, 260, 261, and 261A of the Income and Corporation Taxes Act (ICTA) 1988. Section 259 contains the provisions allowing an unmarried person someone who is not living with a spouse (or someone who lives with a totally incapacitated spouse) to claim an additional personal allowance if they have a qualifying child resident with them. Section 260 sets out the rules for determining entitlement to the APA in cases where there is more than one eligible claimant in respect of the same child. It provides the rules and the procedure for apportioning the allowance. Section 261 provides that a man who marries during a year of assessment may choose to maintain any entitlement he may have to the APA for that year instead of claiming MCA. Section 261A contains rules on the MCA and APA specifically for the year in which a married couple separate.

5. Sub-section (2) provides that these changes shall have effect for the year 2000-01 and subsequent years of assessment.