37A [Effect of assessment where allowances transferred.U.K.
Where an assessment is made on any person for the purpose of making good a loss of tax wholly or partly attributable to [fraudulent or negligent conduct F1], the fact that the person’s total income for any year of assessment is assessed as greater than it was previously taken to be shall not affect the validity of any deduction made from the total income of the person’s spouse by virtue of section [F2257BB], 257D or 265 of the principal Act; and where any such deduction has been made in such a case, the total amount which the first-mentioned person is entitled to deduct from total income for the year in question shall be correspondingly reduced F3.]
Textual Amendments
F1Finance Act 1989 s. 149(4)(a)(i)but not to affect the making of assessments before 1983-84or for accounting periods ending before 1April 1983.Previously
“fraud, wilful default or neglect”.
F2Words in s. 37A substituted (16.7.1992) by Finance (No. 2) Act 1992 (c. 48), s. 20, Sch. 5 para. 9(3), 10
F3Finance Act 1988 s. 35and Sch. 3 para. 30for 1990-91and subsequent years.