PART I.

Income Tax.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1939, at the rate of five shillings and six pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1939, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates (including increases made by this Act) as those at which it is charged for the year beginning on the 6th day of April, 1938.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1939, in relation to income tax and sur-tax and also the provisions relating to increases in the rates of sur-tax contained in this Act shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the said year beginning on the 6th day of April, 1939.

2. —(1) Notwithstanding anything to the contrary contained in section 1 of the Finance Act, 1938 (No. 25 of 1938), the following provisions shall have effect in relation to the sur-tax charged for the year beginning on the 6th day of April, 1938, that is to say:—

(a) the rates at which the said sur-tax shall be charged in respect of the income of any individual which exceeds three thousand pounds but does not exceed eight thousand pounds shall (subject to the subsequent provisions of this section) be the several rates at which the said sur-tax is chargeable by virtue of the said section 1 increased, in the case of each such rate, by ten per cent.;

(b) the rates at which the said sur-tax shall be charged in respect of the income of any individual which exceeds eight thousand pounds shall (subject to the subsequent provisions of this section) be the several rates at which the said sur-tax is chargeable by virtue of the said section 1 increased, in the case of each such rate, by fifteen per cent.

(2) In the case of any individual to whom paragraph (a) of the foregoing sub-section of this section applies, the amount of the surtax with which he is charged by virtue of the said paragraph (a) shall not exceed, and shall, where necessary, be reduced to, the sum of the following amounts, that is to say:—

(a) the amount of the sur-tax which he would be liable to pay if his income had reached but had not exceeded three thousand pounds, and

(b) the amount by which his income exceeds three thousand pounds reduced by income tax at the standard rate on such excess.

(3) In the case of any individual to whom paragraph (b) of sub-section (1) of this section applies, the amount of the sur-tax with which he is charged by virtue of the said paragraph (b) shall not exceed, and shall, where necessary, be reduced to, the sum of the following amounts, that is to say:—

(a) the amount of the sur-tax which he would be liable to pay if his income had reached but had not exceeded eight thousand pounds, and

(b) the amount by which his income exceeds eight thousand pounds reduced by income tax at the standard rate on such excess.

(4) The amount payable by virtue of any assessment, made on or before the 10th day of May, 1939, in respect of sur-tax for the year beginning on the 6th day of April, 1938, to which any of the foregoing provisions of this section applies shall, by virtue of this section and without more, be deemed to be so varied as to give effect to such of the said provisions as is or are applicable.

3. —Sub-section (1) of section 18 of the Finance Act, 1920, shall be construed and have effect as if the words “two hundred and twenty pounds” were substituted therein for the words “two hundred and twenty-five pounds,” and the said sub-section (1) as amended by sub-section (2) of section 3 of the Finance Act, 1932 (No. 20 of 1932), shall be construed and have effect as if the words “one hundred and twenty pounds” were substituted for the words “one hundred and twenty-five pounds.”

4. —In lieu of sub-section (1) (repealed by this Act) of section 3 of the Finance Act, 1932 (No. 20 of 1932), it is hereby enacted that the following provision shall be substituted for section 16 of the Finance Act, 1920, and Part II of the latter Act shall be construed and have effect accordingly, that is to say:—

“An individual who makes, in the manner prescribed by the Income Tax Acts, a claim in that behalf and makes a return in the prescribed form of his total, income shall, for the purposes of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his earned income as estimated in accordance with the provisions of the Income Tax Acts of a sum equal to one-fifth of the amount of that income, but not exceeding, in the case of any individual, the sum of three hundred pounds.”

5. —(1) Exemption shall be granted from tax under Schedule D of the Income Tax Act, 1918, in respect of the profits of any sweepstake held under the Public Hospitals Act, 1933 (No. 18 of 1933), which, but for this section, would have been assessable under Case I of the said Schedule D on the organisers (within the meaning of the said Public Hospitals Act, 1933 ) of such sweepstake or on the sweepstake committee appointed in pursuance of that Act for the purpose of such sweepstake by the said organisers thereof.

(2) In this section, the word “sweepstake” has the meaning given to it by section 1 of the Public Hospitals Act, 1933 (No. 18 of 1933), for the purposes of that Act.

(3) This section shall be deemed to have come into force on and to have had effect as on and from the 6th day of April, 1933.

6. —Allowances payable under section 3 of the Army Pensions Act, 1937 (No. 15 of 1937), shall, in respect of the year beginning on the 6th day of April, 1937, be exempt from income tax (including sur-tax) and shall not be reckoned in computing income for the purposes of the Income Tax Acts.

7. —Where a person who is the occupier of land in respect of the occupation of which he is assessed under Schedule B of the Income Tax Act, 1918, is also the owner or part owner of a stallion which is ordinarily kept on such land, profits derived by such person from fees received or receivable for the service by such stallion on such land of mares owned by other persons shall be deemed, for the purposes of the Income Tax Acts, to arise from the occupation of such land.