Finance Act 1944

1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1 U.K.

Textual Amendments

F1 S. 1 repealed by Customs and Excise Act 1952 (c. 44), s. 320, Sch. 12 Pt I

2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2 U.K.

Textual Amendments

F2 S. 2 repealed by Statute Law Revision Act 1950 (c. 6) and Finance Act 1950 (c. 15), s. 50(7)(8), Sch. 8 Pt II

3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3 U.K.

Textual Amendments

F3 S. 3 repealed by Finance Act 1953 (c. 34), ss. 9(3), 35(7), Sch. 3 Pt. I

4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4 U.K.

Textual Amendments

F4 S. 4 repealed by Finance Act 1951 (c. 43), ss. 13, 44(9), Sch. 7

5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5 U.K.

Textual Amendments

F5 S. 5 repealed by Customs and Excise Act 1952 (c. 44), s. 320, Sch. 12 Pt. I

6, 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6 U.K.

Textual Amendments

F6 Ss. 6, 7 repealed by Statute Law Revision Act 1950 (c. 6)

8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7 U.K.

Textual Amendments

F7 S. 8 repealed by Licensing Act 1953 (c. 46), s. 168, Sch. 10

9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8 U.K.

Textual Amendments

F8 S. 9 repealed by Licensing Act 1953 (c. 46), s. 168, Sch. 10 and Licensing (Scotland) Act 1959 (c. 51), s.200(1), Sch. 12

10–18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9 U.K.

Textual Amendments

F9 Pt. II (ss. 10–18) repealed by Purchase Tax Act 1963 (c. 9), s. 41(1), Sch. 4 Pt. I

19–31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10 U.K.

Textual Amendments

F10 Pts. III and IV (ss. 19–31) repealed with saving by Income Tax Act 1952 (c. 10), s, 527, Sch. 25

PART V U.K. EXCESS PROFITS TAX

32 Increase of standard profits in certain cases. U.K.

(1) Subject to the provisions of this section, if, in relation to any chargeable accounting period beginning at or after the end of March, nineteen hundred and forty-four, the standard profits of a trade or business are ascertained otherwise than by reference to the profits of the standard period, the standard profits shall, in relation to that chargeable accounting period, be increased by one thousand pounds :

Provided that, in relation to a charegeable accounting period which is less than twelve months, the said increase shall be proportionately reduced so as to correspond with the length of the period.

(2) Where—

(a) a trade or business is carried on by a partnership or by a company the directors whereof have a controlling interest therein ; and

(b) the standard profits of the trade or business are ascertained by reference to the minimum amount specified in subsection (2) of section thirteen of the Finance (No. 2) Act, 1939 ; and

(c) there are three or more working proprietors in the trade or business ;

subsection (1) of this section shall have effect as if for the reference to one thousand pounds there were substituted a reference to such greater sum, not exceeding two thousand pounds, as is arrived at by allowing five hundred pounds for each working proprietor in the trade or business.

(3) The preceding provisions of this section shall not apply to any member of a group of companies other than the principal company and, in the case of the principal company of a group of companies the condition set out in subsection (1) of this section that the standard profits of the trade or business must be ascertained otherwise than by reference to the profits of the standard period shall not be deemed to be complied with in relation to a chargeable accounting period if—

(a) the standard profits of the group for any relevant period consisting of or comprising the whole or any part of that chargeable accounting period are ascertained by aggregating the profits and losses arising in the standard period of the group in the trades or businesses of all the members of the group, other than new subsidiaries, or by aggregating those profits and losses and halving the amount arrived at ; or

(b) the standard profits of any new subsidiary for any chargeable accounting period coinciding with or falling wholly or partly within the said chargeable accounting period of the principal company are ascertained by reference to the profits of the standard period of that new subsidiary.

Expressions used in this subsection have the same meanings as they have in the Fifth Schedule to the M1 Finance Act 1940 (which relates to groups of companies).

(4) Where a deficiency of profits occurring in a chargeable accounting period beginning at or after the end of March, nineteen hundred and forty-four, is greater than it would have been if this section had not been passed, the amount of the increase shall not be available (whether under section fifteen of the Finance (No. 2) Act, 1939, or paragraph 6 of Part IV of the Fifth Schedule to the Finance Act, 1940) to reduce profits for any chargeable accounting period ending at or before that date ; but where by virtue of this subsection the whole of a deficiency occuring in a chargeable accounting period cannot be applied in reducing profits for previous chargeable accounting periods, the amount which cannot be applied shall, for the purposes of paragraph (b) of subsection (2) of the said section fifteen, be treated as part of the balance which, under that paragraph, is to be applied in reducing profits in subsequent chargeable periods.

(5) The following provisions shall have effect in relation to chargeable accounting periods falling partly before and partly after the end of March, nineteen hundred and forty-four:—

(a) the standard profits for the whole period shall be computed first on the basis that the foregoing provisions of this section do not apply to such periods as aforesaid and secoundly as if the said foregoing provisions applied to such periods as aforesaid and secoundly as if the said foregoing provisions applied to such periods as aforesaid as they apply to periods beginning at or after the said end of March, and it shall then be ascertained, on each basis, whether there are excess profits or a deficiency of profits for the whole period, and if so what is the amount thereof;

(b) there shall be deemed to be for the first part of the period, excess profits or a deficiency of profits, as the case may be, equal to an apportioned part of the excess profits or deficiency of profits ascertained under paragraph (a) of this subsection on the first basis mentioned therein, and there shall be deemed to be, for the second part of the period, excess profits or a deficiency of profits, as the case may be, equal to an apportioned part of the excess profits or deficiency of profits ascertained under paragraph (a) of this subsection on the second basis mentioned therein;

(c) for the purposes of this section, the first part of the whole period and the second part of the whole period shall each be treated as if it were a seperate chargeable accounting period.

Any apportionment required to be made by paragraph (b) of this subsection shall be made by reference to the number of months or fractions of months in each of the parts of the whole period.

In this subsection, references to the whole period, the first part of the period and the second part of the period shall be construed respectively as references to the whole of the chargeable accounting period falling partly before and partly after the said end of March, so much thereof as falls before the said end of March and so much thereof as falls after the said end of March, and the expression “excess profits” means the amount by which the profits for any period exceed the standard profits therefor.

Modifications etc. (not altering text)

C1 The text of ss. 32–34 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

C2 S. 32 extended by Finance (No. 2) Act 1945 (9–10 G. 6. c. 13), s. 33(4)

Marginal Citations

M1 1940 c.29

33 Tax avoidance. U.K.

(1) Section thirty-five of M2 the Finance Act, 1941 (which relates to transactions designed to avoid liability to excess profits tax), shall have effect, and shall, subject to the provisions of this section, be deemed always to have had effect, as amended by the subsequent provisions of this section.

(2) In subsection (1) of the said section, for the words “the main purpose for which any transaction or transactions was or were effected” there shall be substituted the words “the main purpose or one of the main purposes for which any transaction or transactions was or were effected”, and in subsection (3) of the said section, for the words “on the ground that the main purpose of the transaction or transactions was not the avoidance or reduction of liability to tax” there shall be substituted the words “on the ground that the avoidance or reduction of liability to tax was not the main purpose or one of the main purposes of the transaction or transactions”.

(3) If it appears in the case of any transaction or transactions, being a transaction which involves, or transactions one or more of which involve—

(a) the transfer or acquisition of shares in a company; or

(b) a change or changes in the person or persons carrying on a trade or business or part of a trade or business,

that, having regard to the provisions of the law relating to excess profits tax, other than the said section thirty-five and this section, which were in force at the time when the transaction or transactions was or were effected, the main benefit which might have been expected to accrue from the transaction or transactions during the currency of excess profits tax was avoidance or reduction of liability to the tax, the avoidance or reduction of liability to excess profits tax shall be deemed for the purposes of the said section thirty-five to have been the main purpose or one of the main purposes of the transaction or transactions.

(4) A direction under the said section thirty-five as amended by this section may be given notwithstanding that a direction has been given under that section before the passing of this Act in relation to the transaction or transactions in question or some of them :

Provided that in any case where a direction so given has,before the twenty-fifth day of April, nineteen hundred and forty-four, been cancelled or varied on appeal by the Special Commissioners, no direction given by virtue of this section in relation to the transaction or transactions in question shall affect any chargeable accounting periods ending before the first day of April, nineteen hundred and forty-four.

Modifications etc. (not altering text)

C3 The text of ss. 32–34 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

Marginal Citations

M2 4 & 5 Geo. 6. c. 30.

34 Amendment of s.21 of Finance Act, 1943. U.K.

Section twenty-one of the Finance Act, 1943, shall have effect and be deemed always to have had effect as if the word “coal” were inserted after the second word “to” in the fifth line thereof.

Modifications etc. (not altering text)

C4 The text of ss. 32–34 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

35–41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11 U.K.

Textual Amendments

F11 Pt. VI (ss. 35–41) repealed by Finance Act 1946 (c. 64), s. 67, Sch. 12 Pt. III; (with savings) by Finance Act 1965 (c. 25), ss. 88(1), 97(5), Sch. 22 Pt. IV; Finance Act 1969 (c. 32), s. 61(6), Sch 21 Pt. V and (with savings) by Finance Act 1975 (c. 7), ss. 50, 52(2)(3), 59, Sch. 13 Pt. I

Part VII U.K. Miscellaneous

42 Trading with the enemy. U.K.

The provisions of the Fourth Schedule to this Act shall have effect in relation to income tax [F12 and death duties] where persons, income or property are or is affected by the law relating to trading with the enemy.

Textual Amendments

F12 Words repealed in relation to deaths occurring after 13.4.1975 and, so far as regards the duties referred to in s. 52(2)(b) of the repealing Act, in relation to any death, by Finance Act 1975 (c.7, SIF 99:3), ss. 52(2), 59, Sch. 13 Pt. I note (with a saving in s. 52(3) in relation to repayment or allowance in respect of sums paid before 13.3.1975 on account of the said duties)

43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13 U.K.

Textual Amendments

F13 S. 43 repealed (with savings) by Finance Act 1949 (c. 47), s. 52(9)(10), Sch. 11 Pt. IV

44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14 U.K.

Textual Amendments

F14 S. 44 repealed by Finance Act 1963 (c. 25) ss. 59(5), 73(8)(b), Sch. 14 Pt. IV

45 Exemption of certain assignments by seamen from stamp duty. U.K.

Stamp duty shall not be charged, and shall be deemed never to have been chargeable, on any assignment rendered valid by Regulation forty-seven D of the Defence (General) Regulations, 1939 (which relates to assignments of wages in payment of contributions to certain bodies representing the interests of or providing benefits for seamen).

46 Extension of Barracks Act 1890 s. 11. U.K.

Section eleven of the M3 Barracks Act 1890 (which exempts from stamp duty contracts, conveyances and other documents made with a view to carrying into effect the purposes of that Act) shall have effect as if in the preamble to that Act (which defines the purposes of that Act) the reference to military forces included a reference to naval forces.

Marginal Citations

M3 1890. c. 25.

47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15 U.K.

Textual Amendments

F15 S. 47 repealed by National Loans Act 1968 (c. 13), s. 24(2), Sch. 6 Pt. 1

48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16 U.K.

Textual Amendments

F16 S. 48 repealed by Statute Law Revision Act 1950 (c. 6)

49 X1 †Short title, construction, extent and repeals. U.K.

(1) This Act may be cited as the Finance Act, 1944.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F17

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19

X2 (5) Part V of this Act shall be construed as one with Part III of the Finance (No. 2) Act, 1939.

[F20 X2 (6) Part VI of this Act shall be construed as one with Part I of the M4 Finance Act, 1894.]

(7) Any reference in this Act to any other enactment shall, except so far as the context otherwise requires, be construed as a reference to that enactment as amended by or under any other enactment, including this Act.

(8) The provisions of the Fourth Schedule to this Act shall, if provision in that behalf is made by an Act of the Parliament of Northern Ireland, apply with any necessary modifications to death duties payable in Northern Ireland as they apply to death duties payable in Great Britain, but save as aforesaid such of the provisions of this Act as relate to matters with respect to which the Parliament of Northern Ireland has power to make laws shall not extend to Northern Ireland.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21

Editorial Information

X1 Unreliable margin note.

X2 The text of s. 49(5)(6) is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.

Textual Amendments

F17 S. 49(2) repealed by Statute Law (Repeals) Act 1971 (c. 52)

F18 S. 49(3) repealed by Purchase Tax Act 1963 (c. 9), s. 41(1), Sch. 4 Pt. I

F19 S. 49(4) repealed by Statute Law Revision Act 1953 (2 & 3 Eliz. 2 c. 5)

F20 S. 49(6) repealed in relation to to deaths occurring after 13.4.1975 and, so far as regards the duties referred to in s. 52(2)(b) of the repealing Act, in relation to any death, by Finance Act 1975 (c.7, SIF 99:3), ss. 52(2), 59, Sch. 13 Pt. I (with a saving in s. 52(3) in relation to repayment or allowance in respect of sums paid before 13.3.1975 on account of the said duties)

F21 S. 49(9) repealed by Statute Law Revision Act 1950 (14 Geo. 6 c. 6)

Marginal Citations

M4 57 & 58 Vict. c. 30.