Finance Act 1963

69 Profits tax provisions in connection with Part II of this Act

(1) Where under any of the provisions of sections 22 to 25 of this Act a person has become chargeable to income tax on any amount, the amount shall be treated for the purposes of the profits tax as if it had been received by him, on the date by reference 'to which it is so chargeable to income tax, as income from an investment:

Provided that where the person chargeable is a body corporate the said amount shall be treated for the purposes of section 42(5)(b) of the Finance Act 1938 (by virtue of which rent paid to one body corporate by another associated with it is excepted from the charge to profits tax) as rent paid to the body corporate by the person making the payment in respect of which the amount became chargeable or, where it became chargeable under section 22(2) of this Act, by the tenant on whom the obligation there referred to was imposed ; but in determining whether the said section 42 (5)(b) applies to an instalment as respects which a claim under section 22(6) of this Act has effect the relationship between the person paying and the person receiving the instalment shall be taken to be that subsisting when the transaction in respect of which the instalment is payable was entered into.

(2) Schedule 9 to this Act, as applied (by virtue of section 20(1) of the Finance Act 1937) in computing the profits arising from a trade or business for purposes of the profits tax, shall have effect as if proviso (b) to paragraph 4 were omitted, and no deduction shall be allowed under that Schedule in computing any such profits for those purposes if the amount by reference to which the deduction would be made, or instalments of the payment in respect of which that amount arose, is or are excluded, by virtue of the proviso to the foregoing subsection, in computing profits for those purposes.

(3) As respects expenditure incurred before the 6th April 1963, the provisions of Chapter III of Part II of this Act shall in relation to the profits tax have effect for accounting periods ending before or at the passing of this Act as well as accounting periods ending after the passing thereof, and for that purpose there shall be made all such amendments of assessments, additional assessments and repayments of tax as may be necessary.

(4) Schedule 8 to the Finance Act 1947 shall have effect as if allowances under section 37 of this Act were included among the allowances referred to in paragraph 1(1) of that Schedule (which specifies certain income tax allowances which are to be made also for the purposes of the profits tax), and as if charges under that section were included among the charges referred to in paragraph 2(1) of the said Schedule 8 (which specifies certain income tax charges which are to be so made).

(5) Where rent to which a housing association was entitled for any period is by virtue of a claim made under section 43 of this Act to be disregarded for income tax purposes the rent, together with any expenses incurred by the association in the period, shall be disregarded for purposes of the profits tax, but if the claim has effect by reason of a direction under the proviso to paragraph 2(1) of Schedule 10 to this Act and the direction is subsequently revoked, the liability of the association to profits tax for all relevant chargeable accounting periods shall be adjusted by the making of assessments or additional assessments or otherwise.

(6) An amount which by virtue of section 44 of this Act is to be excluded in computing profits or gains for any income tax purposes shall also be excluded in computing profits for purposes of the profits tax.

(7) This section shall be construed as one with Part III of the Finance Act 1937 and the other enactments relating to the profits tax.