As respects the year of assessment 2000-2001 and subsequent years of assessment, the Principal Act is amended -

(a) by the substitution of the following for section 461A:

"461A. Additional standard rated allowance for certain widowed persons.

(1) In this section -

'appropriate percentage', in relation to a year of assessment, means a percentage equal to the standard rate of tax for that year;

'specified amount', means £1,000.

(2) This section applies to an individual being a widowed person, other than -

(a) a person referred to in paragraph (a) of the definition of 'the specified amount' in section 461(1) (as amended by the Finance Act, 2000), or

(b) a person entitled to a reduction of tax under section 462.

(3) Where for any year of assessment an individual to whom this section applies is entitled to a reduction of tax under section 461, the income tax to be charged on the individual, other than in accordance with section 16(2), for a year of assessment shall be further reduced by an amount which is the lesser of -

(a) an amount equal to the appropriate percentage of the specified amount, or

(b) the amount which reduces that income tax to nil.",

and

(b) in the Table to section 458 -