HC Deb 03 July 1917 vol 95 cc1065-6

(1) Where in pursuance of the provisions of any will or settlement any income arising from any fund is accumulated for the benefit of any person contingently on his attaining some specified age or marrying and the aggregate amount in any Income Tax year of that income and the income from any other fund subject to the like trusts for accumulation and of the total income of that person from all sources (hereinafter referred to as "the aggregate yearly income") is of such an amount only as would entitle an individual either to total exemption from Income Tax or to relief from Income Tax, that person shall, on making a claim for the purpose within three years after the end of the Income Tax year in which the contingency happens, be entitled, on proof of the claim in manner prescribed by the Income Tax Acts, to have repaid to him on account of the Income Tax which has been paid in respect of the income during the period of accumulation a sum equal to the aggregate amount of relief to which he would have been entitled if his total income from all sources for each of the several years of the said period had been equal to the aggregate yearly income for that year; but in calculating that sum a deduction shall be made in respect of any relief already received.

(2) All the provisions of the Income Tax Acts which relate to claims for exemption, relief, or abatement, or the proof to be given with respect to those claims shall apply to claims for relief under this Section, and the proof to be given with respect to those claims.— [Mr. Bonar Law.]

Brought up, and read the first time.

Motion made, and Question proposed, "That the Clause be read a second time."

Mr. NEEDHAM

I would like to ask the right hon. Gentleman if this covers the whole point of the Amendment which I have had on the Paper for some weeks?

Mr. BONAR LAW

We give in substance the Amendment of my hon. Friend and some others, and I believe it does what the hon. Member desires. My hon. Friend will have an opportunity of examining our proposal between now and the Report stage, and he can then raise the matter again if he thinks it is necessary.

Mr. C. ROBERTS

This Clause provides for the case of money left to a person contingently on his arriving at a certain age, and it also provides that the money should be accumulated. Does it also provide that where the money is left without any express instructions in the will it should be accumulated for the benefit of the person entitled? Would that be the case where there were no instructions in the will? In the ordinary course of law the trustee would invest the money, and I want to know if this proposal specifically covers those two cases.

Mr. BALDWIN

It does.

Question put, and agreed to.

Clause read a second time, and added to the Bill.