HC Deb 17 April 1956 vol 551 c894

10. Increase of profits tax

Motion made, and Question, That, as respects chargeable accounting periods ending after the end of March, nineteen hundred and fifty-six, the enactments relating to the profits tax shall be amended by—

  1. (a) substituting thirty per cent. for twenty-seven and a half per cent. as the rate of any tax not being a distribution charge; and
  2. (b) substituting twenty-seven per cent. for twenty-five per cent. as the rate of any relief for non-distribution; and
  3. (c) adjusting the rates of distribution charges to take account of reliefs for non-distribution given at the new rate;
and in connection therewith provision shall be made for the following matters, that is to say, for dividing, either generally or for particular purposes, chargeable accounting periods falling partly before and partly after the end of that month, for treating wholly or partly as a distribution for a chargeable accounting period ending after the end of that month dividends declared on or after the seventeenth day of April, nineteen hundred and fifty-six, and for adjusting the relief to be given on repayment of loans previously treated as distributions.—[Mr. H. Macmillan.] put and agreed to.

11. Profits tax (miscellaneous provisions)

Motion made, and Question, That it is expedient to authorise all such charges to the profits tax (including charges for past chargeable accounting periods) as may result—

  1. (a) from amendments of the law relating to allowances, deductions or charges for income tax purposes;
  2. (b) from amendments of the law as to the cases in which, and periods for which, grouping notices under section twenty-two of the Finance Act, 1937, may be given or are to have effect after the seventeenth day of April, nineteen hundred and fifty-six, or as to the consequences of a body corporate by or as respects which a grouping notice has been given satisfying (after that day) the conditions for exemption from tax under subsection (2) or (3) of section thirty-one of the Finance Act, 1947;
  3. (c) from any provision directing that sums applied after the seventeenth day of April, nineteen hundred and fifty-six, in reducing share capital or in repaying loans shall in certain cases be taken into account in whole or in part either as being distributions or as reducing the amounts which, after a trade or business has ceased, are to be treated as distributions of capital.—[Mr. H. Macmillan.]
put and agreed to.

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