INCOME TAX

HC Deb 06 April 1948 vol 449 cc103-7

25. Charge of Income Tax

Resolved: That—

1. (a) income tax for the year 1948–49 shall be charged at the standard rate of nine shillings in the pound, and, in the case of an individual whose total income exceeds two thousand pounds, at such higher rates in respect of the excess over two thousand pounds as Parliament may hereafter determine;
2. (b) subject to the provisions of any Acts of the present Session relating to gas or to agriculture, and to any enactment which has effect only after the end of the year 1947–48, all such enactments as had effect with respect to the income tax charged for that year, other than enactments which by their terms relate only to tax for that year, shall have effect with respect to the income tax charged for the year 1948–49.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

26. Higher Rates of Income Tax for 1947–48

Resolved: That income tax for the year 1947–48 shall be charged, in the case of an individual whose total income exceeded two thousand pounds, at the same higher rates in respect of the excess over two thousand pounds as were charged for the year 1946–47. And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

27. Personal Reliefs

Resolved: That—

1. (a) in Subsection (1) of Section fifteen of the Finance Act, 1925 (which, as amended by subsequent enactments, provides for a deduction of tax on an amount equal to one-sixth of the amount of earned income but not exceeding two hundred and fifty pounds) and Subsection (2) of the said Section 104 fifteen (which, as amended by subsequent enactments, provides, in a case where an individual or his wife has attained the age of sixty-five years and his total income does not exceed five hundred pounds, for a deduction of tax on an amount equal to one-sixth of his income) the words 'one-fifth' shall be substituted for the words 'one-sixth' and the words 'four hundred pounds' shall be substituted for the words 'two hundred and fifty pounds';
2. (b) in Section eighteen of the Finance Act, 5920 (which, as amended by subsequent enactments, provides, amongst other things, that the deduction of tax allowable in the case of married persons shall in certain cases be increased by an amount not exceeding five-sixths of the earned income of the claimant's wife) the words 'four-fifths' shall be substituted for the words 'five-sixths';
3. (c) in Section nineteen of the Finance Act, 1935 (which, as amended by subsequent enactments, provides that where the total income of an individual does not exceed one hundred and twenty pounds he shall be exempt from income tax and that where the total income of an individual does not exceed one hundred and thirty-five pounds his tax shall not exceed one-quarter of the excess of his total income over one hundred and twenty pounds) the words 'one hundred and thirty-five pounds' shall be substituted for the words 'one hundred and twenty pounds', the words 'one hundred and sixty pounds' shall be substituted for the words 'one hundred and thirty-five pounds' and the words 'three-tenths' shall be substituted for the words 'one-quarter':

Provided that the additional relief afforded by this Resolution for the year 1948–49 shall not affect the amount of tax deductible or repayable before the sixth day of July, nineteen hundred and forty-eight. And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

28. Reduced Rate Relief

Resolved: That—

(1) In Subsection (2) of Section forty of the Finance Act, 1927 (which, as amended by Section seventeen of the Finance (No. 2) Act, 1945, provides, in effect, for tax being charged at one-third of the standard rate on not more than fifty pounds of a person's income and at two-thirds of the standard rate on not more than another seventy-five pounds thereof) a reference to two hundred pounds shall be substituted for the reference to Seventy-five pounds;

(2) The said Subsection (2), as amended by the preceding provisions of this Resolution, shall, where the income of a person includes both earned income of his wife and other income available for relief under the said Subsection (2), have effect subject to the following provisions— (a) Where there is earned income of the wife available for relief under the said Subsection (2), references to fifty pounds plus the amount of the earned income so available, or to one hundred pounds, whichever is the smaller, shall be substituted in the said Subsection (2) for the references to fifty pounds: Provided that where the other income available for relief under the said Subsection (2) falls short of fifty pounds, the amount references to which are to be substituted as aforesaid under this sub-paragraph shall be diminished by the amount of the deficiency; and (b) Where the earned income of the wife available for relief under the said Subsection (2) exceeds fifty pounds, a reference to two hundred pounds plus the amount of the excess or to four hundred pounds, whichever is the smaller, shall be substituted in the said Subsection (2) for the reference to two hundred pounds: Provided that where the other income available for relief under the said Subsection (2) does not exceed fifty pounds, this subparagraph shall not apply, and where the said other income exceeds fifty pounds and falls short of two hundred and fifty pounds, the amount a reference to which is to be substituted as aforesaid under this sub-paragraph shall be diminished by the amount of the deficiency;

(3) In this Resolution—

1. (a) the expression 'earned income' in relation to a wife, means earned income treated as such for the purposes of Subsection (2) of Section eighteen of the Finance Act, 1920 (which provides a special relief for wife's earned income);
2. (b) references to the earned income of the wife available for relief under Subsection (2) of the said Section forty shall be construed as references to her earned income less—
1. (i) so much of any amount which falls to be deducted under any of the provisions of the Income Tax Acts as could not have been deducted but for the existence of the earned income of the wife; and
2. (ii) so much of the amounts tax on which falls to be deducted under Subsection (1) 106 of the said Section forty as could not have been taken into account but for the existence of the earned income of the wife; and
3. (iii) any deduction allowable under Section twenty-seven of the Finance Act, 1946 (which allows relief for national insurance contributions) in respect of contributions paid by the wife as an insured person;
3. (c) references to the income available for relief under Subsection (2) of the said Section forty, other than earned income of the wife, shall be construed as references to to the man's total income other than earned income of the wife, less the total of the amounts, tax on which falls to be deducted under Subsection (1) of the said Section forty, other than so much of those amounts as fall to be deducted from the earned income of the wife in ascertaining the earned income of the wife available for relief under Subsection (2) of the said Section forty;

(4) The additional relief afforded by this Resolution for the year 1948–49 shall not affect the amount of the tax deductible or repayable before the sixth day of July, nineteen hundred and forty-eight.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913."

29. Expenses, etc., of Directors, Employees and others

Resolved: That where—

1. (a) a body corporate, unincorporated society or other body makes any payment in respect of expenses to, or provides any money or any benefits or facilities in kind for, any director, any person taking part in the management of its affairs or any employee; or
2. (b) an individual or partnership carrying on a trade, profession or vocation makes any payment in respect of expenses to, or provides any money or any benefits or facilities in kind for, any employee,

the payment, money, benefits or facilities shall, in such manner and to such extent as may be provided by any Act of the present Session for giving effect to this Resolution, be taken into account for income tax purposes as perquisites of the office or employment of the director, person taking part as aforesaid or employee.

30. British Electricity Authority and Electricity Boards

Resolved: That the Income Tax Acts shall, in relation to the British Electricity Authority and any Area Board established by or under the provisions of the Electricity Act, 5947, have effect, and be deemed always to have had effect, subject to the following provisions—

1. (a) any trade or business carried on by any such Board shall be treated as if it were part of the trade or business carried on by the said Authority;
2. (b) subject to the provisions of paragraph (c) of this Resolution, any property, rights or liabilities of any such Board shall be treated as property, rights or liabilities of the said Authority, and anything done by or to any such Board shall be deemed to have been done by or to the said Authority;
3. (c) any rights, liabilities or things done—
1. (i) of, by or to the said Authority against, to or by any such Board; or
2. (ii) of, by or to any such Board against, to or by the said Authority or any other such Board,

shall be left out of account, and income tax shall be charged accordingly, and the obligations of the said Authority as respects income tax shall be included and be deemed always to have been included among the obligations contributions towards the satisfaction of which may be required from the said Boards under section forty-one of the Electricity Act, 1947. And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.

31. Double taxation agreement with Government of Eire

Resolved: That the agreement between the United Kingdom Government and the Eire Government amending the agreements set out in the Second Schedule to the Finance Act, 1926, and the Fourth Schedule to the Finance Act, 1928, a copy of which was laid before Parliament by command of His Majesty in the month of August, nineteen hundred and forty-seven, shall be confirmed and shall, subject to confirmation by the Oireachtas of Eire, have effect accordingly. And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act, 1913.