HC Deb 18 June 1941 vol 372 c709

(1) This Section applies to offices, employments, annuities, pensions and stipends taxed under Schedule E, where by virtue of—

  1. (a) some provision which is contained in a contract (whether oral or in writing) made before the third day of September, nineteen hundred and thirty-nine, and which has not been varied on or after that date; or
  2. (b) some provision which is contained in an enactment passed before the said third day of September and which has not been amended on or after that date,
the emoluments include a payment to or for the benefit of the recipient of the emoluments in respect of his Income Tax.

(2) The amount, if any, payable, in a case to which this Section applies, to or for the benefit of the recipient of the emoluments in respect of his Income Tax for the year 1941–42 or any subsequent year of assessment, other than Surtax, shall not exceed the amount which would have been payable if the 1938–39 rates of tax, other than the rates of Surtax, had applied to the year of assessment in question.

(3) The amount, if any, payable, in a case to which this Section applies, to or for the benefit of the recipient of the emoluments in respect of his Surtax for the year 1940–41 or any sub sequent year of assessment shall not exceed the amount which would have been payable if the 1937–38 rates of Surtax had applied to the year of assessment in question.

(4)In a case to which this Section applies the recipient of the emoluments shall be entitled to the following adjustments of his liability to Income Tax for the year 1941–42 and Surtax for the year 1940–41, that is to say, his total emoluments for the purposes of the said Income Tax, and his total income for the purposes of the said Surtax so far as it is ascribable to the emoluments, shall be reduced to what they would have been if in his case—

  1. (a) the rates of Surtax in force for the year 1937–38 had applied also to the years 1938–39, 1939–40 and 1940–41; and
  2. (b) the 1938–39 rates of Income Tax, other than Surtax, had applied also to the years 1939–40 and 1940–41; and
  3. (c) the rights and liabilities of the per sons concerned had been modified accordingly. —[ Captain Crookshank.]

Brought up, and read the First and Second time, and added to the Bill.