Finance Act 1952

PART III Income Tax

13 Charge of income tax for 1952-53

Income tax for the year 1952-53 shall be charged at the standard rate of nine shillings and sixpence in the pound and, in the case of an individual whose total income exceeds two thousand pounds, at such higher rates in respect of the excess over two thousand pounds as Parliament may hereafter determine.

14 Alterations in existing personal reliefs etc.

(1) Section two hundred and twenty of the Income Tax Act, 1952 (which relates to the reduced rate relief), shall be amended as follows:—

(a) for the references to fifty pounds and to two hundred pounds respectively there shall be substituted references to one hundred pounds and to one hundred and fifty pounds, and accordingly for the references to one hundred pounds and to four hundred pounds respectively there shall be substituted references to two hundred pounds and to three hundred pounds ; and

(b) at the end of paragraph (b) of subsection (1) there shall be added the words " together with an additional deduction, where the excess is greater than the tax referred to in sub-paragraph (ii) of this paragraph, equal to four-nineteenths of the difference or to four-nineteenths of the tax at the standard rate on one hundred and fifty pounds, whichever is the less " ; in subsection (4) for the second reference to subsection (1) there shall be substituted a reference to sub-paragraph (ii) of paragraph (b) of subsection (1); and after subsection (4) there shall be inserted the following subsection:—

“(4A) Where the earned income of the wife available for relief under the said subsection (1) exceeds two hundred and fifty pounds, a reference to one hundred and fifty pounds plus the amount of the excess or to three hundred pounds, whichever is the smaller, shall be substituted in the said subsection (1) for the second reference to one hundred and fifty pounds:

Provided that where the other income available for relief under the said subsection (1) does not exceed two hundred and fifty pounds, this subsection shall not apply, and where the said other income exceeds two hundred and fifty pounds and falls short of four hundred pounds, the amount references to which are to be substituted as aforesaid under this subsection shall be diminished by the amount of the deficiency.”

(2) In section two hundred and ten of the said Act (which relates to personal reliefs) for the references to one hundred and ten pounds and one hundred and ninety pounds there shall be substituted references to one hundred and twenty pounds and to two hundred and ten pounds.

(3) In sections two hundred and twelve and two hundred and thirteen of the said Act (which relate to relief in respect of children) for the references to seventy pounds there shall be substituted references to eighty-five pounds.

(4) In paragraph (b) of subsection (3) of section two hundred and twelve of the said Act (which relates to relief in respect of children undergoing training) for the reference to thirteen pounds there shall be substituted a reference to twenty-six pounds.

(5) In section two hundred and eleven of the said Act (which relates to the earned income and old age reliefs) for the words " one-fifth " in both places there shall be substituted the words " two-ninths ", and for the reference in subsection (1) to four hundred pounds there shall be substituted a reference to four hundred and fifty pounds; and in subsection (2) of section two hundred and ten (which relates to the additional personal relief on a wife's earned income) for the words " four-fifths " there shall be substituted the words " seven-ninths ".

(6) In section two hundred and sixteen of the said Act (under which a relief is given to a person maintaining a dependent relative with a total income not exceeding one hundred and thirty pounds a year, but the relief is reduced where the relative's total income exceeds eighty pounds a year) a reference to one hundred and thirty-five pounds shall be substituted for the reference to one hundred and thirty pounds, and a reference to eighty-five pounds for the reference to eighty pounds.

(7) The changes effected by this section shall not be deemed to have affected the amounts of tax deductible or repayable under section one hundred and fifty-seven of the said Act before the eighth day of June, nineteen hundred and fifty-two, but nothing in this subsection shall prevent the resulting under-deductions, over-deductions, under-repayments and over-repayments of tax from being adjusted subsequently by means of increased or diminished deductions or repayments under the said section one hundred and fifty-seven, or, if need be, by an assessment.

15 Relief for small incomes

(1) Subject to the provisions of this section a claimant if he proves that his total income for the year of assessment does not exceed two hundred and fifty pounds, shall be entitled to a deduction from the amount of income tax with which he is chargeable equal to tax at the standard rate on two-ninths of the amount of that income.

(2) Subject as aforesaid a claimant not entitled to relief under the foregoing subsection, if he proves that his total income does not exceed three hundred and fifty pounds, shall be entitled to have the amount of the income tax payable in respect of his total income reduced, where necessary, so as not to exceed a sum equal to the aggregate of the two following amounts, that is to say, the amount of the tax which would have been payable if his total income had amounted to but had not exceeded, two hundred and fifty pounds and two-fifths of the amount by which his total income exceeds two hundred and fifty pounds.

(3) A claimant shall not be entitled to relief under this section if he is entitled to relief under subsection (2) of section two hundred and eleven of the Income Tax Act, 1952 (which relates to old age relief), and any relief under this section shall be in substitution for and not in addition to relief under subsection (1) of the said section two hundred and eleven (which relates to earned income relief).

(4) The Income Tax Act, 1952, and in particular Part VIII thereof, shall have effect as if the foregoing provisions of this section were substituted for section two hundred and nine of that Act:

Provided that a reference to subsection (1) of this section shall be included among the sections referred to in subsection (1) of section two hundred and twenty of that Act and among those referred to in subsection (4) of section two hundred and twenty-five of that Act, and subsection (2) of section three hundred and fifty-eight of that Act shall apply in relation to relief under this section as it applies in relation to relief under subsection (2) of section two hundred and eleven of that Act.

16 Extension of provisions relating to W.R.N.S. to its reserves

In paragraph 2 of the Tenth Schedule to the Income Tax Act, 1952 (which lists the women's services treated in the same way as the armed forces for the purposes of tax deduction under the pay-as-you-earn system and for the purposes of certain exemptions), after the words " Women's Royal Naval Service " there shall be inserted the words " or any reserve thereof " , and any regulations in force for the purposes of section one hundred and fifty-seven of that Act at the passing of this Act shall have effect accordingly.

17 Korea gratuity

Sums paid or payable to or in respect of members of the armed forces of the Crown, or to or in respect of women serving in any of the capacities mentioned in the Tenth Schedule to the Income Tax Act, 1952, on account of the Korea gratuity, in pursuance of the scheme for payment of that gratuity announced on behalf of His Majesty's Government in the United Kingdom on the fourth day of October, nineteen hundred and fifty-one, shall not be regarded as being or having been income for any income tax purposes.

18 Sources of income taxable under Case III, IV or V of Schedule D which are disposed of or cease to yield income

(1) Subject to the provisions of this section, if in the year 1952-53 or any subsequent year of assessment a person charged or chargeable in respect of any profits or income chargeable under Case III, IV or V of Schedule D ceases to possess any particular source of any such profits or income or any part of any such source, the following provisions shall apply to the income tax in respect of the profits or income from that source or part:—

(a) notwithstanding anything in subsection (3) of section one hundred and thirty-one or subsection (1) of section one hundred and thirty-four of the Income Tax Act, 1952, the tax shall for that year and (if necessary) for the preceding year be computed separately;

(b) subject to the following paragraph, the tax shall for that year be computed on the amount of the profits or income arising within the year (instead of the profits or income arising within the preceding year), and shall for that preceding year also be computed on the amount of the profits or income arising within it if greater than the amount on which tax is to be computed for that preceding year apart from this provision ;

(c) if no profits or income arose within those two years, and the person charged or chargeable makes a claim under this section not later than twelve months after the end of them, then subject to the following subsections—

(i) the two foregoing paragraphs shall apply to the year of assessment in which profits or income did last arise and the year preceding it as apart from this paragraph they would apply to the year in which he ceases to possess the source or part and the year preceding it; and

(ii) tax shall not for the year of assessment following that in which profits or income did last arise be chargeable on the amount of the profits or income so arising.

(2) A person shall not be entitled by virtue of paragraph (c) of the foregoing subsection to make a claim under this section in respect of any source of profits or income or any part of such a source more than seven years after the end of the year of assessment in which profits or income last arose from that source ; but, subject to the following subsections, a person possessing a source of profits or income chargeable under Case III, IV or V of Schedule D, and having possessed it for six consecutive years of assessment without any profits or income arising from it, shall be entitled (if profits or income did arise from it in the year preceding those six years) to make a claim under this section not later than twelve months after the end of those six years, and if he does so—

(a) the foregoing subsection shall apply as if he had ceased to possess the source of income immediately before the end of those six years; and

(b) proviso (b) to subsection (3) of section one hundred and thirty-one or subsection (3) of section one hundred and thirty-four of the Income Tax Act, 1952, shall apply (in relation to later years of assessment) as if he had acquired the source as a new source immediately after the end of those six years.

(3) A person shall not be entitled to make a claim under this section in respect of any source of profits or income from which profits or income last arose before the year 1951-52 or in respect of a part of any such source.

(4) Where income in respect of which a person has previously been charged or chargeable under Case IV or V of Schedule D becomes at any time chargeable to income tax by deduction under the provisions of Chapter IV of Part VII of the Income Tax Act, 1952, this section shall apply as if the security or possession in question were a source of income which he ceased to possess at that time.

(5) References in this section to income arising shall, in cases where income tax is to be computed by reference to the amount of income received in the United Kingdom, be construed as references to income being so received.

(6) This section shall not apply—

(a) to tax in respect of the property in hereditaments or heritages to which section one hundred and eighty-two of the Income Tax Act, 1952, applies (which section relates to tithes, manorial incidents, etc.); or

(b) to tax in respect of small maintenance payments within the meaning of Chapter VII of Part VII of the Income Tax Act, 1952 ; or

(c) to tax in respect of income to which subsection (1) of section four hundred and thirty of the Income Tax Act, 1952, applies (which section relates to the taxation of investment income of certain life assurance companies).

(7) There shall be made all such adjustments, whether by way of repayment of tax, additional assessment or otherwise, as may be necessary to give effect to this section, and notwithstanding anything in the Income Tax Act, 1952, any adjustment to give effect to a claim under this section may be made at any time.

(8) The provisions of the Sixth Schedule to the Income Tax Act, 1952, shall apply to any claims made under this section:

Provided that—

(a) any such claim shall be made in such form as the Commissioners of Inland Revenue may direct and shall be delivered to the surveyor;

(b) where a surveyor objects to any such claim, it shall be heard and determined by the Commissioners concerned in like manner as in the case of an appeal against an assessment under Schedule D, and the provisions of the Income Tax Act, 1952, relating to the statement of a case for the opinion of the High Court on a point of law shall apply;

(c) any such claim to which objection is made shall, if the claimant so elects when he makes the claim, be heard and determined by the Special Commissioners, and paragraph (b) of this proviso shall have effect accordingly.

(9) A person's executors or administrators may make any claim under this section which he might have made, if he had not died, in respect of any source of profits or income or part of such a source which he ceased to possess before his death, and may also make a claim under this section in respect of sources of profits or income which he ceased to possess by dying, and after a person's death—

(a) any tax paid by him and repayable by virtue of a claim under this section (whether made by him or by his executors or administrators) shall be repaid to his executors or administrators; and

(b) any additional tax chargeable by virtue of such a claim shall be assessed and charged upon his executors or administrators and shall be a debt due and payable out of his estate.

19 Expenditure by mining concerns on abortive exploration

(1) Subject to the provisions of this section, where the person carrying on a trade which consists of or includes the working of any mine, oil well or other source of mineral deposits of a wasting nature incurs expenditure in connection with that trade on searching for, or on discovering and testing, the mineral deposits of any source or winning access thereto, but gives up the search, exploration or inquiry upon which the expenditure is incurred without having carried on any trade which consists of or includes the working of the source in question, then in computing for the purposes of income tax the profits or gains or losses of the trade in connection with which the expenditure is incurred there shall be allowed a deduction of an amount equal to the amount of that expenditure as if it were expenses incurred for the purpose of the trade at the time when he gives up the search, exploration or inquiry.

(2) This section shall not apply—

(a) to expenditure incurred before the beginning of the year 1952-53; or

(b) to expenditure incurred in the course of a trade which consists of or includes the searching for, discovering and testing of mineral deposits and winning access thereto, if it is expenditure which is, apart from this section, allowed to be deducted in computing, for the purposes of income tax, the profits or gains of that trade; or

(c) to any other expenditure incurred by a person in connection with a source, unless it would have been expenditure to which Chapter III of Part X of the Income Tax Act, 1952, applies if he had begun working the source in the course of a trade at the time when he gives up the search, exploration or inquiry;

and the same expenditure shall not be taken into account for the purposes of this section in relation to more than one trade.

(3) The foregoing provisions of this section shall not affect the right to any deduction or allowance under any other provision of the Income Tax Acts, but—

(a) a person shall not be entitled to a deduction or allowance in respect of the same expenditure both under this section and under some other provision of those Acts; and

(b) subsection (2) of section three hundred and nine of the Income Tax Act, 1952 (which enables a person working a source of mineral deposits to receive an allowance in respect of expenditure on the exploration of that source incurred by a person who did not work it), shall not apply to expenditure in respect of which a deduction has been allowed under this section.

(4) The Income Tax Act. 1952, shall have effect, and this section shall be construed, as if this section were contained in Chapter III of Part X of that Act.

20 Expenditure by mining concerns on machinery and plant used for exploration

(1) Nothwithstanding paragraph (iii) of the proviso to subsection (1) of section three hundred and five of the Income Tax Act, 1952 (which excludes expenditure on machinery or plant from the expenditure for which allowances may be made under Chapter III of Part X of that Act), the expenditure on searching for or on discovering and testing mineral deposits, or winning access thereto, to which the said Chapter III applies shall, subject to the other provisions of that Chapter and of this section, include expenditure on machinery or plant, and the said Part X shall have effect accordingly:

Provided that this section and the said Part X shall have effect subject to the provisions of the Fifth Schedule to this Act.

(2) Notwithstanding anything in the foregoing subsection, where in any year of assessment (including a year before the year 1952-53) a machinery or plant allowance is or has been made in respect of any expenditure, that expenditure shall not by virtue of this section be treated in relation to that or any subsequent year of assessment as expenditure to which the said Chapter III applies.

In this subsection " machinery or plant allowance " means an initial allowance under Chapter II of Part X of the Income Tax Act, 1952, or under section fifteen of the Income Tax Act, 1945, or an annual allowance within the meaning of the said Chapter II.

(3) Where an allowance under the said Chapter III is made in respect of expenditure to which that Chapter applies by virtue of this section, then for the purposes of the said Chapter II the amount of that expenditure (whether it is the whole or part only of the capital expenditure on the machinery or plant in question) shall be taken to be equal only to the amount of any residue of that expenditure immediately after the making of the allowance or last allowance in respect thereof under the said Chapter III, and the cost of the machinery or plant shall be treated as correspondingly reduced.

(4) The Income Tax Act, 1952, shall have effect, and this section shall be construed, as if this section were contained in Chapter III of Part X of that Act.

21 Expenditure by mining concerns on acquisition of land outside the United Kingdom

(1) Subject to the provisions of this section, capital expenditure incurred by any person in connection with the working of a mine, oil well or other source of mineral deposits of a wasting nature under a foreign concession, being expenditure on the acquisition of land outside the United Kingdom which is to be used in connection with the working of the source and is likely to become valueless when the concession comes to an end to the person working the source immediately before the concession comes to an end, shall, notwithstanding anything in section three hundred and five of the Income Tax Act, 1952, be expenditure to which Chapter III of Part X of that Act applies, and Part X of that Act shall have effect accordingly:

Provided that this section and the said Part X shall have effect subject to the provisions of the Fifth Schedule to this Act.

(2) This section shall not apply—

(a) to expenditure which, apart from this section, is expenditure to which the said Chapter III applies ; or

(b) to expenditure on machinery or plant, or on any asset which has been treated for any year of assessment as machinery or plant; or

(c) to expenditure on the acquisition of a building or structure for use in connection with the working of a source of mineral deposits, in so far as the expenditure is attributable to the building or structure and not to its site, if—

(i) the building or structure when so used is an industrial building or structure within the meaning of Chapter I of the said Part X; and

(ii) the interest acquired is the relevant interest within the meaning of that Chapter in relation to the capital expenditure incurred on the construction of that building or structure.

(3) The reference in paragraph (a) of subsection (6) of section three hundred and ten of the Income Tax Act, 1952, to expenditure which, apart from that section, is expenditure to which the said Chapter III applies shall be construed as if this section had not been passed.

(4) In no case shall the amount on which a balancing charge is made upon a person be increased by virtue of the provisions of this section by more than the total amount by which annual allowances made to that person are increased by virtue thereof.

(5) The Income Tax Act, 1952, shall have effect, and this section shall be construed, as if this section were contained in Chapter III of Part X of that Act.

22 Contributions by mining concerns to public services, etc., outside the United Kingdom

(1) Subject to the provisions of this section, where a person for the purposes of a trade carried on by him which consists of or includes the working of a mine, oil well or other source of mineral deposits of a wasting nature outside the United Kingdom, incurs expenditure by contributing a capital sum to the cost of—

(a) buildings to be occupied by persons employed at or in connection with the working of that source; or

(b) works for the supply of water, gas or electricity wholly or mainly to buildings occupied or to be occupied by persons so employed; or

(c) works to be used in providing other services or facilities wholly or mainly for the welfare of persons so employed or their dependants;

and the buildings or works are likely to be of little or no value when the source is no longer worked, then for each of the ten relevant years of assessment there shall be made to him an allowance equal to one tenth of that expenditure.

(2) This section shall not apply—

(a) to expenditure incurred before the beginning of the year 1952-53; or

(b) to expenditure resulting in the acquisition of an asset by the person incurring the expenditure ; or

(c) to expenditure in respect of which an allowance may be made under any other provision of the Income Tax Acts (or might be so made if this section had not been passed).

(3) If a person who has incurred expenditure to which this section applies in connection with any source of mineral deposits sells his interest in that source to a person who buys it for the purpose of a trade carried on or to be carried on by him, being a. trade which consists of or includes the working of that source, then—

(a) no allowance in respect of that expenditure shall be made to the first mentioned person for any year of assessment after that in the basis period for which the sale takes place and the allowance (if any) to be made to him for the last mentioned year shall be the fraction of the full allowance which the part of the basis period before the sale is of the whole basis period; and

(b) the second mentioned person shall be entitled to the remainder of the allowance for the last mentioned year of assessment, and shall be treated for any remaining year of the ten relevant years of assessment as having incurred for the purposes of the said trade and in connection with the said source expenditure to which this section applies of an amount equal to that incurred by the first mentioned person.

(4) If a person who has incurred expenditure to which this section applies in connection with any source of mineral deposits sells his interest in part of that source to a person who buys it for the purpose of a trade carried on or to be carried on by him, being a trade which consists of or includes the working of that part of the source, then the last foregoing subsection shall apply to so much of the expenditure as is referable to that part of the source as it would apply to the whole of the expenditure on a sale extending to the whole of the source, and any allowance in respect of the expenditure shall be apportioned accordingly.

(5) For the purposes of this section the ten relevant years of assessment, in relation to any expenditure to which this section applies, are the year of assessment in the basis period for which the expenditure was incurred by the person making the contribution in question, and each of the nine succeeding years of assessment.

(6) The Income Tax Act, 1952, shall have effect, and this section shall be construed, as if the foregoing provisions of this section were contained in Chapter III of Part X of that Act.

(7) In sub-paragraph (1) of paragraph 1 of Part I of the Eighth Schedule to the Finance Act, 1947 (which lists certain income tax allowances which are to be made also for the purposes of the profits tax), there shall be inserted after paragraph (d) the following paragraph:—

“(e) an allowance under section twenty-two of the Finance Act, 1952 (which provides for allowances in the case of certain contributions by mining concerns to public services outside the United Kingdom)”.

23 Fees and expenses in connection with unsuccessful applications for patents

The following provisions of the Income Tax Act, 1952 (which provide for a deduction or allowance in respect of fees paid and expenses incurred in obtaining a patent), that is to say.—

(a) section one hundred and thirty-nine (which relates to payments made for the purposes of a trade); and

(b) subsection (1) of section three hundred and twenty (which relates to payments not so made);

shall have effect in relation to fees paid or expenses incurred in connection with any application for a patent where the application has been rejected or abandoned, as they would have effect in relation to those fees or expenses if the patent had been granted.

24 Amendments as to allowances, etc., in respect of machinery or plant and patent rights

The provisions of the Sixth Schedule to this Act shall have effect in relation to allowances, deductions and charges under Chapter II of Part X of the Income Tax Act, 1952, in respect of machinery and plant and under Chapter V of the said, Part X in respect of patent rights.

25 Allowances for buildings, etc., of tunnel undertakings

(1) Subject to the following subsections, the Income Tax Act, 1952, shall have effect as if in subsection (1) of section two hundred and seventy-one (which defines "industrial building or structure " to mean a building or structure in use for the purposes listed in paragraphs (a) to (f) of the subsection) for the words " or hydraulic power undertaking " in paragraph (b) there were substituted the words " hydraulic power or tunnel undertaking ".

(2) No allowance or charge shall be made by virtue of this section for any year of assessment earlier than the year 1952-53, and in any case in which, on the day immediately preceding any such year of assessment, a building or structure is to be treated as an industrial building or structure by virtue only of this section, subsection (5) of section two hundred and sixty-eight of the Income Tax Act, 1952 (which provides for treating part of the expenditure on a building or structure as written off in years in which no annual allowance or scientific research allowance is made in respect of it), shall apply with the omission of proviso (a) (which excludes the operation of the subsection in the case of industrial buildings and structures).

(3) This section shall not affect any allowance or charge which would have been made under Part X of the Income Tax Act, 1952, if this section had not been passed, and where by virtue of this section a balancing charge is made on a person in respect of any expenditure, the amount on which it is made shall not exceed the amount of the allowances made to him in respect of that expenditure by virtue of this section.

26 Tied premises

(1) In computing for the purposes of income tax the profits or gains or losses of a trade carried on by a lessor of tied premises—

(a) there shall be taken into account as a trading receipt any untaxed rent payable for the premises to him, and there shall be allowed as a deduction any untaxed rent paid for the premises by him; but

(b) no deduction shall be allowed in respect of the premises either by reference to his being entitled to a rent for the premises less than the rent which might have been obtained (or less than the annual value of, or the rent payable by him for, the premises) or, subject to the foregoing paragraph, in respect of the rent or annual value of the premises.

(2) For the purposes of this section, premises shall be deemed to be tied premises in relation to any lessor thereof and in relation to any trade carried on by him, if but only if in the course of that trade he is concerned, whether as principal or agent, in the supply of goods sold or used on the premises, and accordingly deals with the premises or his interest therein as property employed for the purposes of that trade, and " the relevant trade " in relation to any tied premises and to any lessor thereof means any trade carried on by him in relation to which they are tied premises.

(3) Where part only of premises in respect of which rent is paid by or payable to a lessor of the premises are tied premises in relation to him, the rent paid or payable for the tied premises shall for the purposes of this section be taken to be that part of the entire rent which on a fair and just apportionment is attributable to them.

(4) References in this section to untaxed rent do not include any part of the rent under a long lease ; but where—

(a) the amount of any payment of rent for tied premises which is payable under a short lease by the occupier exceeds the Schedule A assessment on the premises or, if the payment is for a period less than a year, a proportionate part of that assessment; or

(b) the amount of any payment of rent for tied premises which is payable under a short lease otherwise than by the occupier exceeds the amount which, if charged to tax at the standard rate, would yield a sum of tax equal to the Schedule A deduction from the payment;

then a part of the payment equal to the excess is to be treated as untaxed rent for the purposes of this section.

(5) For the purposes of paragraph (a) of the last foregoing subsection—

(a) " the Schedule A assessment " means, in relation to any payment of rent for any premises, the amount of the assessment on those premises under Schedule A for the year when the payment becomes due, as reduced for the purpose of collection, (or, if the premises are for that year comprised in the same unit of assessment as other land, a proportionate part of the assessment on the unit for that year, as so reduced); and

(b) in the case of a payment of rent for a period extending into more than one year of assessment, the part accruing during each of those years shall be treated as a separate payment becoming due in that year, if the amount of the Schedule A assessment on the premises is not the same for each year;

and for the purposes of paragraph (b) of that subsection " the Schedule A deduction " means, in relation to any payment of rent, the amount (if any) of the tax deductible from the payment under section one hundred and seventy-four of the Income Tax Act, 1952, or the corresponding provision repealed by that Act (assuming, if it is not so, that all payments of rent and tax and all deductions of tax from rent have been made in due course), and " the standard rate " means the rate at which tax is or was deductible.

(6) Subject to the next following subsection, a lessor of tied premises who is chargeable to tax for any year of assessment in respect of the profits or gains of the relevant trade shall not be liable for that year (or for the part of it during which he carries on the said trade) to any tax in respect of the premises under section one hundred and seventy-five or one hundred and seventy-six of the Income Tax Act, 1952 (which sections provide for taxing excess rents arising under short leases).

(7) Where for any year of assessment or part of such a year a lessor of tied premises is chargeable with tax either—

(a) under section one hundred and seventy-five of the Income Tax Act, 1952, in respect of land comprised in the same unit of assessment as the tied premises ; or

(b) under section one hundred and seventy-six of that Act in respect of land comprised in the same lease as the tied premises (being a lease the rent under which is payable to him);

but is by virtue of the last foregoing subsection relieved of liability to tax in respect of the tied premises under the section in question, his liability under that section shall in the first instance be computed as if this section had not been passed, but his total liability (so computed) in respect of the land comprised in the unit of assessment or in the lease, as the case may be, shall be reduced by the part which on a fair and just apportionment is attributable to the tied premises for the period for which he is so relieved of liability in respect of them.

(8) In the case of tied premises outside the United Kingdom—

(a) subsection (1) of this section shall apply with the omission of the word " untaxed " wherever occurring; and

(b) the lessor if he is chargeable to tax for any year of assessment in respect of the profits or gains of the relevant trade shall not be liable for that year (or for the part of it during which he carries on the said trade) to tax under Case V of Schedule D in respect of any rent for the premises.

(9) Where the person carrying on a trade is, in the case of any premises, entitled in equity to the interest of any lessor of those premises, then in relation to that person subsections (1) to (5) of this section shall apply as if he were the lessor of the premises and as if any rent payable to or paid by the lessor were payable to or paid by him, and in relation to the lessor of the premises subsections (6) and (7) (or, in the case of premises outside the United Kingdom, paragraph (b) of subsection (8)) shall apply as they would apply to the person carrying on the trade if the lessor's interest in the premises and in any other relevant land were vested in him.

(10) In this section, " lease ", " lessor ", " long lease ", " short lease " and " unit of assessment" mean the same as in Chapter II of Part VII of the Income Tax Act, 1952.

27 Removal of limit of time for carrying forward of losses and management expenses

(1) In section three hundred and forty-two of the Income Tax Act, 1952 (which permits trading and other losses to be carried forward for six years)—

(a) in subsection (1), for the words " for the six following years of assessment" there shall be substituted the words " for subsequent years of assessment "; and

(b) in subsection (3), the words " for any year within the said six following years " and the word " such " shall be omitted,

and the other provisions of Part XII of the said Act shall have effect accordingly.

(2) In section three hundred and forty-six of the said Act (which permits losses on certain transactions falling within Case VI of Schedule D to be carried forward for six years)—

(a) in subsection (1) for the words " any of the six following years of assessment" there shall be substituted the words " any subsequent year of assessment "; and

(b) in subsection (3), the words " within the said six following years " shall be omitted.

(3) In subsection (2) of section four hundred and twenty-five of the said Act (which allows management expenses to be carried forward for relief purposes for six years) for the words "for any of the six years of assessment next following " there shall be substituted the words " for any subsequent year of assessment " , and section four hundred and thirty-eight of that Act shall have effect accordingly.

(4) This section applies to—

(a) losses or expenses incurred after the beginning of the year 1952-53; and

(b) so much of any loss or expense incurred before the beginning of the said year as could, apart from this section, be carried forward to the said year; and

(c) so much of any losses incurred before the end of the year 1946-47 as could, by virtue of subsection (1) of section twenty-two of the Finance (No. 2) Act, 1945, have been carried forward to the year 1952-53, if the relevant years, as defined in the said subsection (1), had included the year 1946-47,

but does not apply to any other losses or expenses, and so much of the proviso to subsection (2) of section five hundred and thirty-one of the Income Tax Act, 1952, as relates to the application of that section to sections three hundred and forty-two, three hundred and forty-five, three hundred and forty-six, four hundred and twenty-five and four hundred and thirty-eight of that Act shall have effect subject to the provisions of this subsection.

28 Rents for easements for wires etc. of radio relay services

(1) Subsection (2) of section one hundred and eighty of the Income Tax Act, 1952 (which relates to rents in respect of easements enjoyed in connection with electric, telegraphic or telephonic wires or cables), shall be amended by the addition at the end of the proviso thereto of the following paragraph— “and

(c) any payment of rent to which this subsection applies which is made subject to deduction of tax shall, if it is paid by a person carrying on a trade which consists of or includes the provision of a radio relay service and the wire or cable in question is used by that person for the purposes of that service—

(i) be deductible (notwithstanding anything in paragraph in) of section one hundred and thirty-seven of this Act) in computing the amount of the profits or gains of the trade to be charged under Case I of Schedule D; and

(ii) be deemed for the purposes of sections one hundred and sixty-nine and one hundred and seventy of this Act not to be payable out of profits or gains brought into charge to tax”,

and in subsection (3) of the said section one hundred and eighty, after the definition of " rent", there shall be inserted the following definition—

• “' radio relay service ' means the retransmission by wire to their customers of broadcast programmes (which may or may not be television programmes) which the persons carrying on the service receive either by wire or by wireless from the British Broadcasting Corporation or from the persons outside the United Kingdom who broadcast the programmes in question”.

(2) In section three hundred and forty-five of the Income Tax Act, 1952 (which allows assessments under section one hundred and seventy of that Act to be allowed as losses for certain purposes), at the end of subsection (2) thereof (which specifies certain payments to which the said section three hundred and forty-five shall not apply) there shall be added the following paragraph— “or

(d) any such payment of rent as is referred to in paragraph (c) of the proviso to subsection (2) of section one hundred and eighty of this Act”.

(3) Section twenty-seven of the Finance Act, 1950, and section nineteen of the Finance Act, 1928, (being the provisions respectively corresponding, in the enactments repealed by the Income Tax Act, 1952, to the relevant portions of section one hundred and eighty, and to section three hundred and forty-five of that Act) shall, as respects tax for years of assessment before the year 1952-53, have effect and be deemed always to have had effect as if there had been made in them (with the necessary adaptations of wording and in particular with the necessary adaptations of the references to other enactments) the amendments which are directed by subsections (1) and (2) of this section to be made in sections one hundred and eighty and three hundred and forty-five of the Income Tax Act, 1952, and all such assessments, additional assessments, withdrawals or reductions of assessments and repayments of tax shall be made as are necessary to give effect to this subsection:

Provided that nothing in this subsection affects tax for any year of assessment before the year 1950-51.

29 Reserves of marketing boards

(1) Where a marketing board to which this section applies carries on a trade which includes the buying and selling of the board's commodity, and the board is required in connection with arrangements for maintaining guaranteed prices to producers of that commodity to pay the whole or part of any surplus derived from dealings in the commodity into a reserve fund satisfying the conditions of the next following subsection, then—

(a) in computing for the purposes of income tax the profits or gains or losses of the said trade there shall be allowed as deductions any sums required to be paid by the board into the reserve fund out of the profits or gains of the trade, and there shall be taken into account as trading receipts any sums withdrawn by the board from the fund except in so far as the sums withdrawn are required to be paid to a Minister of the Crown or Government department or are distributed to producers of the board's commodity; and

(b) in computing for the purposes of income tax the profits or gains or losses of a trade carried on by any person there shall be taken into account as a trading receipt any payment made to him on a distribution by the board to producers of the board's commodity of sums withdrawn from the fund.

(2) The conditions to be satisfied by the reserve fund are—

(a) that no sum may be withdrawn from it by the board without the authority or consent of a Minister of the Crown or Government department; and

(b) that, where money has been paid to the board by a Minister of the Crown or Government department in connection with the arrangements for maintaining guaranteed prices to producers of the board's commodity, sums afterwards standing to the credit of the fund are required to be applied in whole or in part in repaying that money ; and

(c) that the sums standing to the credit of the fund and not otherwise applied become, at intervals fixed by or under any scheme or arrangements approved by or made with a Minister of the Crown or Government department, available for distribution to producers of the board's commodity.

(3) In this section—

(a) " marketing board to which this section applies " means any body of persons established by or under any enactment and having for its object or one of its objects to regulate in the interests of producers in the United Kingdom or any class of them the marketing of a particular commodity, and " the board's commodity " refers to that commodity;

(b) " required " means required by or under any scheme or arrangements approved by or made with a Minister of the Crown or Government department;

(c) " Minister of the Crown or Government department" includes a Minister of the Crown or Government department in Northern Ireland ;

(d) " producer " includes a person who produces one type or quality of the commodity from another and (except in so far as the context otherwise requires) a person who has been a producer and the personal representatives of a producer who has died.

(4) For the purposes of paragraph (b) of subsection (1) of this section, a payment made to a person in respect of a trade he has ceased to carry on, and a payment made to a person's personal representatives but referable to his having carried on the trade in respect of which it is made, shall be treated as if it had been made to him on the last day on which he was engaged in carrying on the trade.

(5) This section shall have effect as respects the year 1950-51 and any subsequent year of assessment.

30 Priority in bankruptcy, winding up etc. of employers' liability for tax deducted

(1) There shall be included among the debts which under section thirty-three of the Bankruptcy Act, 1914, are to be paid in priority to all other debts in the distribution of the property of a bankrupt or person dying insolvent any sums due at the relevant date from the bankrupt or person dying insolvent on account of tax deductions for the twelve months next before that date, and for the purposes of this subsection the expression " the relevant date " means the date of the receiving order or of the death, as the case may be.

(2) There shall be included among the debts which under section three hundred and nineteen of the Companies Act, 1948, are to be paid in priority to all other debts in the winding up of a company any sums due at the relevant date from the company on account of tax deductions for the twelve months next before that date, and for the purposes of this subsection the expression " the relevant date " has the meaning assigned to it by the said section three hundred and nineteen.

(3) Where a receiver is appointed on behalf of the holders of any debentures of a company secured by a floating charge, or possession is taken by or on behalf of those debenture holders of any property comprised in or subject to the charge, there shall be included among the debts which under section ninety-four of the Companies Act, 1948, are to be paid in priority to any claim for principal or interest in respect of the debentures any sums due at the relevant date from the company on account of tax deductions for the twelve months next before that date, and for the purposes of this subsection the expression " the relevant date " means the date of the appointment of the receiver or of possession being taken as aforesaid, as the case may be.

(4) References in this section to sums due from a person on account of tax deductions for any period refer to the amount of the deductions of income tax from emoluments paid during the period which that person was liable to make by virtue of section one hundred and fifty-seven of the Income Tax Act, 1952 (or section one of the Income Tax (Employments) Act, 1943), less the amount of the repayments of income tax which that person was liable to make as aforesaid during the same period.

(5) Nothing in subsection (1), (2) or (3) of this section shall apply in a case where the relevant date for the purposes of the subsection in question is earlier than the date of the passing of this Act.

(6) In the application of this section to Scotland, the following subsection shall be substituted for subsection (1):—

“(1) There shall be included among the debts which, under section one hundred and eighteen of the Bankruptcy (Scotland) Act, 1913, are to be paid in priority to all other debts in the division of a bankrupt's estate, any sums due at the relevant date from the bankrupt on account of tax deductions for the twelve months next before that date, and for the purposes of this subsection the expression " the relevant date " means the date mentioned in subsection (4) of the said section one hundred and eighteen.”;

and subsection (3) of this section shall not apply to a company registered in Scotland.

(7) In the application of this section to Northern Ireland, the following subsection shall be substituted for subsection (1):—

“(1) Section one of the Preferential Payments in Bankruptcy Act (Northern Ireland), 1933, shall have effect as if after paragraph (f) of subsection (1) there were added the following paragraph:—

“(g) any sums due at the date of the order of adjudication from the bankrupt on account of tax deductions for the twelve months next before that date (within the meaning of section thirty of the Finance Act, 1952);”

and for the purposes of this subsection the expression " the relevant date " means the date of the order of adjudication (or in a case to which subsection (6) or (8) of the said section one applies, the date substituted by that subsection for the date of the order of adjudication).”;

and subsections (2) and (3) of this section shall have effect as if references to section two hundred and thirty-four and to section seventy-six of the Companies Act (Northern Ireland), 1932. were respectively substituted for references to section three hundred and nineteen and to section ninety-four of the Companies Act, 1948.

31 Surtax assessments

No provision in regulations of the Commissioners of Inland Revenue for surtax to be assessed and charged by the Special Commissioners at an office or a particular office of theirs shall be taken to affect or to have affected the validity of any assessment to surtax, wherever made by them and whether made before or after the beginning of the year 1952-53.

32 Meaning of "Income Tax Acts"

In this Act and in any other Act passed after the commencement of the Income Tax Act, 1952, the expression " the Income Tax Acts ", except in so far as the context otherwise requires, means the Income Tax Act, 1952, and any other enactments relating to income tax.