INCOME TAX

HC Deb 11 March 1952 vol 497 cc1317-21

7. Charge of Income Tax for 1952–53

Resolved, That income tax for the year 1952–53 shall be charged at the standard rate of nine shillings and sixpence 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. 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.

8. income Tax (personal reliefs, etc.)

Resolved, That the Income Tax Act, 1952, shall be amended as follows:—

1. (a) in section two hundred and twenty (reduced rate relief)—
   1. (i) references to £50 and £200 (the amounts to which the three shilling and five and sixpenny rates ordinarily apply) shall be replaced by references to £100 and £150, and accordingly the references to £100 and £400 (the special amounts for cases where the wife has earned income) shall be replaced by references to £200 and £300;
   2. (ii) there shall be added a new provision that where the amount of tax remaining chargeable as mentioned in subsection (1) exceeds tax at the standard rate on £250, there shall be a further deduction equal to four-nineteenths of the excess or to four-nineteenths of the tax at the standard rate on £150, whichever is the less (giving a reduced rate on that amount of 7s. 6d.), together with an extension for cases to which subsection (2) (wife's earned income) applies corresponding to subsection (4) with the substitution for the present references to £50, £200, £250 and £400 of references to £250, to £150, to £400, and to £300;
   and subsection (3) of section three hundred and fifty-four (which apportions the personal reliefs in part to the wife's earned income) shall apply to so much of the new provision as corresponds to the said subsection (4) as it applies to the said subsection (4);
2. (b) in section two hundred and ten (personal reliefs) the references to £110 and £190 (which fix the amounts of the personal relief and also the limit on the additional relief on wife's earned income) shall be replaced by references to £120 and £210;
3. (c) in sections two hundred and twelve and two hundred and thirteen (children relief) the references to £70 (which fix the amount of the 1318 relief for each child and the limit on the child's own income) shall be replaced by references to £85;
4. (d) in section two hundred and eleven (earned income and old age reliefs) the fraction one-fifth (which fixes the rate of those reliefs), and in section two hundred and ten the fraction four-fifths (which fixes the rate of the additional relief on wife's earned income), shall be replaced by the fractions two-ninths and sevennjnths, and in section two hundred and eleven the reference to £400 (which fixes the limit on the earned income relief) shall be replaced by a reference to £450;
5. (e) there shall be added a new provision, in place of section two hundred and nine (incomes below £160), that a claimant not entitled to relief under subsection (2) of section two hundred and eleven) old age relief)—
   1. (i) it he proves that his total income does not exceed £250, shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to tax at the standard rate on two-ninths of the amount of that income;
   2. (ii) if he proves that his total income does not exceed £350, shall be entitled to have the amount of income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax which would have been payable if his total income had amounted to, but had not exceeded, £250, and two-fifths of the amount by which his total income exceeds £250;
   but so that the Income Tax Act, 1952, and in particular Part VIII shall apply to relief under the new provision in the same way as to relief under subsection (2) of section two hundred and eleven, except that the references to that subsection in subsection (1) of section two hundred and twenty and subsection (4) of section two hundred and twenty-five shall not apply to the provision in sub-paragraph (ii) of this paragraph;

Provided that the changes effected by this resolution shall not affect the amounts of tax deductible or repayable under section one hundred and fifty-seven of the Income Tax Act, 1952, before the eighth day of June, nineteen hundred and fifty-two, but nothing in this proviso shall prevent the resulting under-deductions, over-deductions, under-repayments and over-repayments of tax from being adjusted subsequently by means of increased or diminished deductions and repayments under the said section one hundred and fifty-seven, or, if need be, by an assessment. 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.

9. Income Tax (sources of income ceasing to yield income)

Resolved, That it is expedient to authorise such additional charges to income tax under Case III, IV or V of Schedule D (including charges for years before 1952–53) as may result from any new provision about the method of charging tax in cases where a person ceases to possess a source of profits or income from which no profits or income arose during the preceding year of assessment, or possesses a source of profits or income for six consecutive years of assessment without any profits or income arising from it, and in related cases.

10. Income Tax (tied premises)

Resolved, That, where a lessor of any premises in the course of a trade carried on by him is concerned, whether as principal or agent, in the supply of goods sold or used on the premises, and by reason thereof deals with the premises or his interest therein as property employed for the purposes of that trade, then in computing for the purposes of income tax the profits or gains or losses of that trade—

1. (a) no deduction shall be allowed in respect of the premises by reference to his being entitled to a rent for the premises less than the rent which might have been obtained (or less than the annual value of, or the rent payable by him for, the premises) or in respect of the rent or annual value of the premises, except such deductions (if any) as may be allowed under any Act of the present session relating to finance; and
2. (b) there shall be taken into account as a trading receipt the rent payable for the premises to him or such part of that rent as may be directed by any such Act;

and for this purpose a person having an interest in the reversion on the term created by a letting may be treated as a lessor and rent payable to or paid by the actual lessor may be treated as payable to or paid by him.

11. Income Tax (allowances and charges in respect of machinery, plant and patent rights)

Resolved, That it is expedient to authorise such increases in the income tax payable by any person as may result from amendments of the law relating to allowances, deductions or charges under Part X of the Income Tax Act, 1952, being amendments applicable to machinery or plant or patent rights.

12. Income Tax (underwriters' reserves)

Resolved, That it is expedient to authorise such increases in the income tax payable by any person as may result from raising the limit on the amounts which Lloyd's and other underwriters may pay into special reserve funds.

13. Income Tax (reserves of marketing boards)

Resolved, That it is expedient to make provision as to the consequences for income tax purposes in the year 1950–51 and later years of transfers into and out of, and distributions of sums withdrawn from, special reserve funds established by marketing boards in connection with arrangements for maintaining guaranteed prices to producers of any commodity.

14. Income Tax (radio relay services)

Resolved, That, in the case of radio relay services and in such other cases, if any, as may be specified in any Act giving effect to this resolution, provision (retrospective so as to cover tax for the year 1950–51 and all subsequent years of assessment) shall be made that, for income tax purposes, rents and other payments for easements and other rights connected with electric, telegraphic or telephonic wires or cables shall be deductible in computing profits and losses and shall be deemed not to be payable out of profits or gains brought into charge to tax, without, however, the sum on which tax has been paid in respect thereof being treated as a loss so as to give ground for relief in a subsequent year of assessment.

15. Income Tax (surtax assessments)

Resolved, That no provision in regulations of the Commissioners of Inland Revenue for surtax to be assessed and charged by the Special Commissioners at an office or a particular office of theirs shall be taken to affect or to have affected the validity of any assessment to surtax, wherever made by them and whether made before or after the passing of this resolution.

16. Income Tax (profits tax not to be a deduction, etc.)

Resolved, That, as respects the year 1951–52 and subsequent years of assessment,—

1. (a) profits tax for any chargeable accounting period ending after the end of the year nineteen hundred and fifty-one shall not be a deduction in computing profits or gains or losses for income tax purposes or be reckoned as expenses of management for the purpose of any income tax relief for expenses of management;
2. (b) foreign tax allowed as a credit against the profits tax for any such period shall not be treated for income tax purposes as reducing the amount of any income.

17. Income Tax (charges consequential on introduction of excess profits levy)

Resolved, That it is expedient to authorise such increases in the income tax payable by any person for the year 1951–52 or any subsequent year of assessment as may result from extending any enactment relating to relief for double taxation, with or without modifications, to any excess profits levy provided for by any Act of the present session.