HC Deb 01 May 1940 vol 360 c740

19. "That—

  1. (a) in computing any profits or losses of any banking business, assurance business or business consisting wholly or partly in dealing in securities, stocks or shares which is carried on in the United Kingdom by a person not resident therein, interest, dividends and other payments to which paragraph (d) of Rule 2 of the General Rules applicable to Schedule C extends shall be included;
  2. (b) if, in computing any profits or losses of any such business carried on in the United Kingdom by a person not ordinarily resident therein, the interest on any securities issued by the Treasury has, by virtue of an exemption from Income Tax for the interest thereon, to be excluded, there shall also be excluded any interest or other expenses, and any profits or losses, attributable to the acquisition or holding of the securities, or to transactions therein;
  3. (c) in the case of an assurance company not having its head office in the United Kingdom, the interest, dividends or payments dealt with in paragraph (a) of this Resolution shall be included in computing the income from the investments of its life assurance fund, and if in computing that in come any interest on any securities issued by the Treasury with an exemption from Income Tax for the interest thereon is excluded, a reduction shall be made in the relief in respect of management expenses;
  4. (d) the foregoing paragraphs of this Resolution shall apply in relation to any computation for the purposes of the year 1940–41 or subsequent years of assessment irrespective of the year or period by reference to which the computation is to be made;
  5. (e) it is expedient to declare the effect on the exemption from Income Tax enjoyed in certain circumstances as respects the interest, dividends and payments mentioned in the foregoing paragraphs of this Resolution of certain provisions of the Income Tax Acts which provide that in certain circumstances income of one person is to be deemed to be income of another person."