§ (1) For the purposes of the provisions of this Act relating to tax free payments—
- (a) a provision, however worded, for the payment of such sum as will after deduction of income tax be equal to a stated amount, shall be treated as a provision for the payment of the said stated amount free of income tax, other than Surtax; and
- (b)the expression "a stated amount" includes a stated fraction of the gross amount of any specified income (that is to say, of the amount of that income before income tax has been charged thereon, whether by deduction or otherwise), but does not include a stated fraction of the net amount of any specified income (that is to say, of the amount of that income after it has been charged to income tax, whether by deduction or otherwise);
- (c)the expression "if the 1938–39 rates of Income Tax, other than Surtax, had applied" means, in relation to a year of assessment, if the standard rate of tax for the year had been five shillings and six pence in the pound and the provisions of the Income Tax Acts relating to relief from tax had not been amended in any respect by any Act passed since the third day of September, nineteen hundred and thirty-nine.
§ (2) The Treasury may by regulations provide for adjustments between parties where payments to which the said provisions of this Act apply have been made before the passing of this Act otherwise than in accordance with those provisions. — [Captain Crookshank.]
§ Brought up, and read the First and Second time, and added to the Bill.