HC Deb 29 June 1943 vol 390 cc1593-4

1. In the case of a payment which is not one of a series of payments there shall be deducted in computing the profits of the accounting period in which the payment was made a sum equal to one-twentieth of the amount of the payment, and the like deduction shall be made in the next succeeding accounting period, and so on, and no other deductions shall be made in respect of the payment or any part thereof in computing the profits of any accounting period: Provided that—

  1. (a) where any accounting period is less than twelve months, the amount to be deducted in the case thereof shall be proportionately reduced so as to correspond with the length of the period;
  2. (b) the total of the sums deducted shall not exceed the amount of the payment.

2. In the case of a series of payments the same deductions shall he made as would have been made under paragraph I of this Schedule if a single payment had been made at the date of the first of the payments of an amount equal to the actuarial value, estimated as at the date of the said first payment, of all the payments, and no other deductions shall be made in respect of any of the payments or any part thereof in computing the profits of any accounting period.

Provided that—

  1. (a) the sum to be deducted in the case of of any accounting period shall not, together with the sums deducted in the case of previous accounting periods, exceed the total payments actually made up to the end of that accounting period; and
  2. (b) where, by virtue of the foregoing proviso the amount of any deduction is reduced, the deduction which falls to be made in the case of the next succeeding accounting period shall be correspondingly increased, subject, however, to the application of that proviso to that succeeding accounting period, and so on.

3. References in this Schedule to accounting periods include references to accounting periods no part of which fall within the standard period (if any) or any chargeable accounting period, and this Schedule shall have effect as if the profits of all such accounting periods had to be computed for the purposes of excess profits tax, and the expressions "the total of the sums deducted "and" the sums deducted in the case of previous accounting periods" shall be construed accordingly.

4. This Schedule shall not apply to any payment unless it is a payment in respect of which a deduction is admissible on Income Tax principles and unless, apart from the provisions of this Act and of Sub-section (2) of Section thirty-three of the Finance Act, 1940 (which relates to the spreading over several accounting periods of deductions not reasonably and properly attributable to one period only), a deduction in respect of that payment or, where the payment is one of a series of payments in respect of one or some of those payments, would have fallen to be made in computing the profits of an accounting period consisting of or including the whole or any part of the standard period or a chargeable accounting period.— [Sir K. Wood.]

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

Sir Peter Bennett (Birmingham, Edgbaston)

On a point of Order. You have not put the Amendment, Mr. Deputy-Speaker, to insert, in line 6, the words "or enactments passed," although it covers the same point as the Amendment just made.

Mr. Deputy-Speaker(Mr. Charles Williams)

That Amendment has not been selected.

The Attorney-General

It is unnecessary.

Bill to be read the Third time upon the next sitting Day, and to be printed. [Bill 46.]

The remaining Orders were read, and postponed.

It being after the hour appointed for the Adjournment of the House; Mr. DEPUTY-SPEAKER adjourned the House, without Question put, pursuant to the Standing Order.