Finance Act 1944

36 Amendment of s. 59 of Finance Act, 1940.

In section fifty-nine of the Finance Act, 1940, for the definition of " Average rate" there shall be substituted the following definition—

• “' Average rate ' means, in relation to a company, a rate per cent. per annum, the percentage being ascertained by—

  (a)

  computing the aggregate amount of the net income of the company for the relevant accounting years (a deduction being made, where the company sustained a loss in any of those years, of the amount of the loss);

  (b)

  dividing that amount by the number of those years ; and

  (c)

  comparing the result with the principal value of the assets of the company passing on the death of the deceased by virtue of section forty-six of this Act after making the allowances to be made under section fifty of this Act”.