Finance Act 1921

Section 35.

FIRST SCHEDULEAscertainment of Mean Date in the case of Amalgamated Trades or Businesses

1In this Schedule the expression " separate date " means, in relation to any of the constituent trades or businesses comprised in the amalgamated trade or business, the date on which the final accounting period of that trade or business would have ended if no amalgamation had taken place.

2The mean date shall be a date later than the earliest of the separate dates of the constituent trades or businesses by such number of months as is determined, in accordance with the provisions hereinafter contained, to be the appropriate number.

3For the purpose of determining the appropriate number of months, there shall be ascertained—

(a)the aggregate amount of the several sums representing the pre-war standard of profits of each of the constituent trades or businesses for the last accounting period of that trade or business prior to amalgamation ;

(b)the aggregate amount of the several sums produced by multiplying the pre-war standard of profits of each of the constituent trades or businesses for the last accounting period aforesaid by a number equal to the number of months between the earliest of the separate dates and the separate date of that trade or business ;

and the appropriate number of months shall be the number produced by dividing the second aggregate so to be ascertained by the first aggregate so to be ascertained.

4For the purposes of this Schedule—

(a)any part of a month exceeding one-half of the month shall be treated as a complete month, and no account shall be taken of any less part of a month ; and

(b)the amount of the pre-war standard of profits shall, whatever the length of the last accounting period, be taken to be the amount of that standard as in respect of a full year and not an amount reduced under paragraph 2 of Part II. of the Fourth Schedule to the principal Act.