1A

The rate applicable in accordance with this subsection is—

a

in the case of income chargeable under Schedule F, the Schedule F ordinary rate;

b

in the case of equivalent foreign income falling within subsection (3)(b) below and chargeable under Case V of Schedule D, the Schedule F ordinary rate; and

c

in the case of any other income, the lower rate.

5

For the purposes of subsection (1)(b) above and any other provisions of the Income Tax Acts—

a

so much of any person’s income as comprises income to which this section applies shall be treated as the highest part of his income; and

b

so much of that part as consists of—

i

income chargeable under Schedule F (if any), and

ii

equivalent foreign income falling within subsection (3)(b) above and chargeable under Case V of Schedule D (if any),

shall be treated as the highest part of that part.

1BRates of tax applicable to Schedule F income etc

1

In the case of so much of an individual’s income which consists of—

a

income chargeable under Schedule F (if any), and

b

equivalent foreign income falling within section 1A(3)(b) and chargeable under Case V of Schedule D (if any),

as is income falling within section 1(2)(b), income tax shall, by virtue of this subsection, be charged at the Schedule F upper rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(b).

2

In relation to any year of assessment for which income tax is charged—

a

the Schedule F ordinary rate is 10 per cent., and

b

the Schedule F upper rate is 32.5 per cent.,

or, in either case, such other rate as Parliament may determine.