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6 1967


Chapter IX

Miscellaneous Provisions as to Schedule D

Persons chargeable.

105. —Tax under Schedule D shall be charged on and paid by the persons or bodies of persons receiving or entitled to the income in respect of which tax under that Schedule is in this Act directed to be charged.

Interest payable out of rates.

106. —(1) Where any creditor on any rates or assessments not chargeable as profits is entitled to any interest of money, the proper officer having the management of the accounts may be charged with the tax payable thereon, and shall be answerable for all matters necessary to enable the tax to be duly charged and for payment thereof, as if the rates or assessments were profits chargeable to tax, and shall be, in like manner, indemnified in respect of all such matters as if the said rates or assessments were chargeable.

(2) Where—

(a) the proper officer having the management of the accounts of a body may be charged with tax as aforesaid for any year of assessment, and

(b) in that year that body occupies any property, in respect of which any tax under Schedule A for that year would, but for this subsection, be ultimately borne by that body,

then, in computing the amount on which the said proper officer may be so charged for that year, a deduction shall be made of a sum equal to whichever of the following is the lesser—

(i) the amount on which, but for this subsection, the said proper officer might so be charged,

(ii) the net amount on which the tax, referred to in paragraph (b) would, but for this subsection, be ultimately borne by that body.

Apportionment of profits.

107. —(1) Where in the case of any profits or gains chargeable under Case III of Schedule D pursuant to section 78 or chargeable under Case I, Case II or Case IV of Schedule D it is necessary, in order to arrive at the profits or gains or losses of any year of assessment or other period, to divide and apportion to specific periods the profits or gains or losses for any period for which the accounts have been made up, or to aggregate any such profits or gains or losses or any apportioned parts thereof, it shall be lawful to make such a division and apportionment or aggregation.

(2) Any apportionment under this section shall be made in proportion to the number of months or fractions of months in the respective periods.

Limitation of deductions for certain taxes.

108. —As respects the computation of income for the purposes of income tax for any year of assessment, any deduction which, but for this section, would be allowable for the tax in the United Kingdom known as profits tax shall be reduced by an amount equal to so much of that tax as can, under section 21 of the Finance Act, 1949 , be allowed as a credit against corporation profits tax.