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15 1951

FINANCE ACT, 1951

PART I.

Income Tax.

Income tax and sur-tax for the year 1951-52.

1. —(1) Income tax shall be charged for the year beginning on the 6th day of April, 1951, at the rate of six shillings and six pence in the pound.

(2) Sur-tax for the year beginning on the 6th day of April, 1951, shall be charged in respect of the income of any individual the total of which from all sources exceeds one thousand five hundred pounds and shall be so charged at the same rates as those at which it is charged for the year beginning on the 6th day of April, 1950.

(3) The several statutory and other provisions which were in force on the 5th day of April, 1951, in relation to income tax and sur-tax shall, subject to the provisions of this Act, have effect in relation to the income tax and sur-tax to be charged as aforesaid for the year beginning on the 6th day of April, 1951.

Increase of personal allowance for married man.

2. —Subsection (1) of section 18 of the Finance Act, 1920, as amended by section 2 of the Finance Act, 1947 (No. 15 of 1947), is hereby further amended by the substitution of “two hundred and eighty pounds” for “two hundred and sixty pounds”.

Increase of deductions in respect of children.

3. —(1) Without prejudice to subsection (2) of this section, subsection (1) of section 21 of the Finance Act, 1920, as amended by subsequent enactments, is hereby further amended by the substitution of “a deduction of eighty pounds” for “a deduction of sixty pounds”.

(2) Subsection (2) of section 4 of the Finance Act, 1944 (No. 18 of 1944), is hereby amended—

(a) by the substitution of “eighty pounds” for “sixty pounds”, and

(b) by the substitution of “for the year beginning on the 6th day of April, 1951, or any subsequent year, to sixty-three pounds” for “for the year beginning on the 6th day of April, 1944, to forty-eight pounds and, for the year beginning on the 6th day of April, 1945, or any subsequent year, to forty-three pounds”.

Allowances from total income—persons aged sixty-five or upwards.

4. —(1) (a) Any individual who, in the manner prescribed by the Income Tax Acts, makes a claim in that behalf, makes a return in the prescribed form of his total income, and proves that at any time during the year of assessment either he or, in the case of a married man, his wife living with him was of the age of sixty-five years or upwards and that his total income for the year of assessment does not exceed five hundred pounds, shall, for the purpose of ascertaining the amount of his assessable income for the purpose of income tax, be allowed a deduction from the amount of his total income of a sum equal to one-fifth of the amount of that income.

(b) Any individual who would, but for the fact that his total income exceeds five hundred pounds, be entitled to an allowance as aforesaid 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, five hundred pounds, and one-half of the amount by which his total income exceeds five hundred pounds.

(2) Any deduction or relief under subsection (1) of this section shall be in substitution for and not in addition to the deduction under section 16 of the Finance Act, 1920, as amended by section 4 of the Finance Act, 1939 (No. 18 of 1939).

(3) The provisions of section 30 of the Income Tax Act, 1918, as amended by subsequent enactments (which relates to penalties in cases of fraudulent claims) shall apply with respect to claims under this section.

(4) Where, on an application made for the purpose under the provisions of the Income Tax Acts, income tax for any year is assessable and chargeable on the incomes of the husband and wife respectively as if they were not married, the benefit of any allowance or relief under subsection (1) of this section shall be apportioned between the husband and wife according to the amounts of their respective total incomes.

(5) In this section “total income” means total income from all sources as estimated in accordance with the provisions of the Income Tax Acts.

Exemption for trade unions.

5. —Subsection (2) of section 39 of the Income Tax Act, 1918, as amended by section 3 of the Finance Act, 1937 (No. 18 of 1937), is hereby further amended by the substitution of “one hundred and thirty pounds a year by way of annuity” for “eighty pounds a year by way of annuity”.

Conversions under Government Loans (Conversion) Act, 1951.

6. —(1) In this section—

the Act” means the Government Loans (Conversion) Act, 1951;

Government loan”, “new loan”, “the redemption date” and “stockholder” have the same meanings respectively as they have in the Act.

(2) Where a holding, or part of a holding, of stock of a Government loan is converted under the Act and the stockholder is a person who is carrying on a trade which consists wholly or partly in dealing in securities, the stockholder shall, if he gives notice in writing to the inspector of taxes, not later than the end of the year of assessment next following the year of assessment in which the redemption date falls, that he desires to be so treated, be treated for the purposes of the Income Tax Acts as having changed his investment on the redemption date, but if he gives no such notice, he shall be for those purposes treated, both then and thereafter, as not having changed his investment, and in that case the produce of any subsequent realisation of the whole or any part of the holding of the new loan (which holding shall, for the purpose of this provision, be deemed to include any stock issued by way of bonus in respect of the conversion) together with any additional consideration, or the appropriate part of any additional consideration, received by him in connection with the conversion, shall be treated as the produce of the realisation of the whole or the appropriate part of the original holding.