First Previous (FINANCE ACT, 1952) Next (PART II. Customs and Excise.)

14 1952

FINANCE ACT, 1952

PART I.

Income Tax.

Income tax and sur-tax for the year 1952–53.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1952, at the rate of seven shillings and six pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1952, 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 as those at which it is charged for the year beginning on the 6th day of April, 1951.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1952, in relation to income tax and sur-tax 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 year beginning on the 6th day of April, 1952.

Alteration of earned income allowance and of allowance from total income (person aged sixty-five or upwards).

2. —(1) The following provision shall be substituted for section 16 of the Finance Act, 1920, as amended by section 4 of the Finance Act, 1939 (No. 18 of 1939), 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—

(a) one-fourth of so much of that income as does not exceed eight hundred pounds; and

(b) one-fifth of so much of that income as exceeds eight hundred pounds;

but not exceeding, in the case of any individual, the sum of four hundred pounds.”

(2) Section 4 of the Finance Act, 1951 (No. 15 of 1951), shall be construed and have effect as if—

(a) “one-fourth” were substituted for “one-fifth” in paragraph (a) of subsection (1), and

(b) “six hundred pounds” were substituted for “five hundred pounds” wherever the latter words occur in paragraphs (a) and (b) of subsection (1), and

(c) a reference to subsection (1) of this section were substituted in subsection (2) for the reference to section 4 of the Finance Act, 1939 .

Deduction in respect of dependent relative—increase of income limit of relative.

3. —Subsection (1) of section 22 of the Finance Act, 1920, as amended by section 5 of the Finance Act, 1944 (No. 18 of 1944), and section 7 of the Finance Act, 1949 (No. 13 of 1949), is hereby further amended by the substitution of “whose total income from all sources does not exceed eighty pounds a year” for “whose total income from all sources does not exceed fifty pounds a year”.

Alteration of reduced rate relief and consequential amendment of section 32 of Income Tax Act, 1918.

4. —(1) The following provision shall be substituted for section 23 of the Finance Act, 1920, as amended by subsection (4) of section 3 of the Finance Act, 1932 (No. 20 of 1932), 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 be entitled to be charged at two-fifths of the standard rate of tax on the first one hundred pounds of his taxable income and at four-fifths of the standard rate of tax on the next one hundred pounds of that income.”

(2) References in any enactment to the said section 23 of the Finance Act, 1920, as amended by the said subsection (4) of section 3 of the Finance Act, 1932 , shall be construed and have effect subject and with due regard to the substitution effected by subsection (1) of this section and, in particular, references in any enactment to half the standard rate of tax in relation to the first one hundred pounds of taxable income shall, as respects the first one hundred pounds of taxable income, be construed as references to two-fifths of the standard rate of tax and shall, as respects the next one hundred pounds of taxable income, be construed as references to four-fifths of the standard rate of tax.

(3) The following words shall be substituted for the words “half the standard rate of tax” in paragraph (i) of subsection (1) of section 32 of the Income Tax Act, 1918, as amended by section 26 of the Finance Act, 1920, and in subparagraph (i) of paragraph (e) of subsection (3) of the said section 32 as so amended, that is to say:

“the lesser of the two following rates:

(A) half the standard rate of tax,

(B) the rate obtained by dividing the tax payable by the person referred to in subsection (1) of this section, before deduction of any relief under this section or of any double taxation relief under any agreement between the Government and the Government of any other State, but after reduction in respect of any tax which he is entitled to charge against any other person, by the amount of his taxable income, which for this purpose shall be deemed to be reduced by the amount of any income the income tax upon which he is entitled to charge as aforesaid”,

and references in any enactment to section 32 of the Income Tax Act, 1918, shall be construed and have effect accordingly.

Cesser of section 2 of Finance Act, 1941.

5. Section 2 of the Finance Act, 1941 (No. 14 of 1941), shall, notwithstanding subsection (2) thereof, not apply to the year beginning on the 6th day of April, 1952, or to any subsequent year.