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Finance Act 1947

Status:

This is the original version (as it was originally enacted).

  1. Introductory Text

  2. PART I Customs and Excise.

    1. 1.Hydrocarbon oils.

    2. 2.Discontinuance of charge of duty on removal of oils to a refinery.

    3. 3.Tobacco.

    4. 4.Relief for pensioners in respect of increase in tobacco duty.

    5. 5.Repeal and reduction of certain artificial silk duties and allowances.

    6. 6.Duty free use of sugar, etc..

    7. 7.Imported films.

    8. 8.Reduction of duty and other relief in respect of certain mechanically propelled vehicles.

    9. 9.Rate of excise duty on motor-cars (other than electrically propelled).

  3. PART II Purchase Tax.

    1. 10.Intermediate rate of purchase tax on certain goods.

    2. 11.Cesser of charge and reduction of rates of purchase tax on certain goods.

    3. 12.Commencement of two preceding sections, and saving.

    4. 13.Adjustment of rights as between seller and buyer under certain sales of electric and gas appliances.

  4. PART III Income Tax.

    1. Charge of tax, etc..

      1. 14.Income Tax for 1947-48.

      2. 15.Alteration of certain reliefs.

      3. 16.Repayment of post-war credits.

      4. 17.Continuance of allowance for repairs.

      5. 18.Relief from balancing charges for certain cotton spinning concerns.

    2. Retirement and other benefits for directors and employees.

      1. 19.Charge to tax in respect of provision for retirement or other benefits to directors and employees of bodies corporate.

      2. 20.Exemptions from charge to tax under the preceding section.

      3. 21.Approval of retirement benefit schemes.

      4. 22.Aggregation and severance of schemes.

      5. 23.Supplementary provisions as to retirement or other benefits and application to unincorporated societies.

    3. Miscellaneous provisions as to income tax.

      1. 24.Relief for capital expenditure on rehabilitation.

      2. 25.Payments of the profits tax to be treated as expenses of management.

      3. 26.Amendment of s. 4 of Income Tax Act, 1945.

      4. 27.Exemption from income tax of training expenses allowances and bounties of reserve and auxiliary forces.

      5. 28.Exemption from income tax of gratuities payable to certain women who re-engage in the forces.

      6. 29.Assets transferred under Coal Industry Nationalisation Act, 1946.

  5. PART IV The Profits Tax.

    1. Principal changes of the law.

      1. 30.Rate of the profits tax.

      2. 31.Exemption of individuals and partnerships of individual from the profits tax.

      3. 32.Investment income to be included in computing profits.

      4. 33.Abatement of profits in certain cases.

    2. Supplementary provisions as to non-distribution relief and distribution charges.

      1. 34.Meaning of " net relevant distributions to proprietors ".

      2. 35.Meaning of " gross relevant distributions to proprietors ".

      3. 36.Meaning of " distribution " and provision with respect to repaid loans.

      4. 37.Apportionments to be made to arrive at gross relevant distributions for a period.

    3. Provisions applicable in special cases.

      1. 38.Subsidiary companies.

      2. 39.Persons resident outside United Kingdom.

      3. 40.Nationalised undertakings.

      4. 41.Industrial and provident societies.

      5. 42.Building societies.

      6. 43.Persons carrying on several trades or businesses and changes in the persons carrying on trades or businesses.

      7. 44.Liquidations, receiverships, partnerships, etc..

    4. Miscellaneous provisions as to the profits tax.

      1. 45.Amendment of limit on amount allowable as deduction in respect of directors' remuneration.

      2. 46.Co-ordination of treatment for profits tax purposes with treatment for income tax and excess profits tax purposes, etc..

      3. 47.Commencement of Part IV and transitional provisions.

      4. 48.Interpretation of Part IV.

  6. PART V Death Duties.

    1. 49.Charge of additional duty.

    2. 50.Limits of value.

    3. 51.Relief from estate duty on bearer securities compulsorily registered.

  7. PART VI Stamp Duties.

    1. Increase of existing duties.

      1. 52.Increase of existing duties and provisions consequential thereon.

      2. 53.Transitional provisions as to compositions for transfers of stock, etc. and "as to loan capital.

      3. 54.Savings for certain conveyances and leases.

      4. 55.Savings for maximum rates.

    2. Other provisions as to existing duties.

      1. 56.Repeal or reduction of duties on legal professions.

      2. 57.Exemption of transfers of stock guaranteed by Treasury.

      3. 58.Extension and explanation of charge on customs bonds.

      4. 59.Time for payment of companies capital duty by statutory companies.

    3. Duty on bonus issues of securities.

      1. 60.Charge of duty on bonus issues of securities, etc..

      2. 61.Special provisions as to issue of securities.

      3. 62.Special provisions as to variation of rights or liabilities on securities.

  8. PART VII Miscellaneous.

    1. 63.Excess profits tax and profits tax-provisions as to remuneration of directors.

    2. 64.Provision applicable where joint and several liability has been imposed under Finance Act, 1943, s. 24.

    3. 65.Relaxation of rules as to use of post-war refunds of excess profits tax in case of nationalised undertakings, etc..

    4. 66.Amendments as to granting of credit for foreign tax.

    5. 67.Treatment of farm animals, etc., for income tax and profits tax purposes.

    6. 68.Provisions as to permanent annual charge for the National Debt.

    7. 69.Amendment as to deficit for 1946-47.

    8. 70.Reduction of debt.

    9. 71.Winding up of Essential Commodities Reserves Fund.

    10. 72.Payment out of Consolidated Fund of deficiencies of interest on Post Office Savings Banks Fund and Fund for the Banks for Savings.

    11. 73.Monopoly value of new on-licence where current on-licence surrendered.

    12. 74.Short title, construction, extent and repeals.

  9. SCHEDULES.

    1. FIRST SCHEDULE

      TOBACCO (RATES OF DUTY AND DRAWBACK).

      1. PART I Customs Duties.

      2. PART II Excise Duties.

      3. PART III Drawback.

    2. SECOND SCHEDULE

      ARTIFICIAL SILK DUTIES.

      1. PART I Reduced Duties of Customs on Artificial Silk Yarn and Tissues under Section 4 of the Finance Act, 1925.

      2. PART II Amendments of Part II of the First Schedule to the Silk Duties (No. 1) Order, 1934 (S.R. & O. 1934 No. 653).

      3. PART III Enactments Repealed.

    3. THIRD SCHEDULE

      PURCHASE TAX.

      1. Intermediate Rate (Goods Chargeable).

        1. 1.Glass mirrors (whether framed or not), not being optically worked...

        2. 2.Domestic appliances and domestic apparatus, being appliances and apparatus of...

        3. 3.Lawn mowers of a kind suitable for operation from electric...

        4. 4.Mechanically propelled road vehicles constructed or adapted solely or mainly...

    4. FOURTH SCHEDULE

      PURCHASE TAX.

      1. Intermediate Rate (Consequential and Supplementary Provisions).

        1. PART I Amendments of Purchase Tax Enactments.

          1. 1.In subsection (1) of section twenty of the Finance (No....

          2. 2.In the Seventh Schedule to the Finance (No. 2) Act,...

          3. 3.For subsection (1) of section seventeen of the Finance Act,...

          4. 4.In the Seventh Schedule to the Finance Act, 1942— the...

        2. PART II Ascertainment of Retail Value of Road Vehicles in connection with the Tax.

          1. 1.The following provisions of this Part of this Schedule shall...

          2. 2.The retail value of a vehicle shall be taken to...

          3. 3.For the purpose of computing the price which a vehicle...

    5. FIFTH SCHEDULE

      PURCHASE TAX: EXEMPTIONS AND REDUCTIONS.

      1. PART I Classes of Goods becoming Exempt, and Dates from which Exemptions Operate.

      2. PART II Classes of Goods becoming Chargeable at Reduced Rate, and Dates from which Reductions Operate.

      3. PART III Classes of Goods becoming Chargeable at Basic Rate, and Dates from which Reductions Operate.

    6. SIXTH SCHEDULE

      PURCHASE TAX : AMENDMENTS OF SEVENTH SCHEDULES TO FINANCE (No. 2) ACT, 1940, AND FINANCE ACT, 1942, CONSEQUENTIAL ON EXEMPTIONS AND REDUCTIONS PROVIDED BY FIFTH SCHEDULE TO THIS ACT.

      1. PART I Amendments consequential on Exemptions and Reductions operating from 16th April 1947.

        1. Amendments of Seventh Schedule to Finance (No. 2) Act, 1940.

        2. Amendment of Seventh Schedule to Finance Act, 1942.

      2. PART II Amendments consequential on Exemptions and Reductions operating from 10th July, 1947.

        1. Amendments of Seventh Schedule to Finance (No. 2) Act, 1940.

        2. Amendment of Seventh Schedule to Finance Act, 1942.

    7. SEVENTH SCHEDULE

      INCOME TAX IN RELATION TO ASSETS TRANSFERRED UNDER COAL INDUSTRY NATIONALISATION ACT, 1946.

      1. PART I Interpretation.

        1. 1.In this Schedule— " the Board " means the National...

        2. 2.The provisions of Part VIII of the Income Tax Act,...

      2. PART II Liability to Income Tax of the Transferor.

        1. 1.The provisions of this Part of this Schedule shall have...

        2. 2.Parts I, II, III, V and VI of the Income...

      3. PART III Liability to Income Tax of the Board.

        1. General.

          1. 1.The provisions of this Part of this Schedule shall have...

          2. 2.In relation to any relevant property, the vesting date or...

          3. 3.The vesting of, or of an interest in, any relevant...

        2. Industrial Buildings and Structures, etc..

          1. 4.For the purposes of section one of the Income Tax...

          2. 5.For the purposes of subsection (5) of section three of...

          3. 6.Any relevant mills, factories and exceptional depreciation allowances made in...

        3. Machinery and Plant.

          1. 7.For the purpose of determining whether any and if so...

        4. Allowances and charges under Part III of Income Tax Act, 1945.

          1. 8.(1) The provisions of subsection (1) of section twenty-six of...

          2. 9.In the application of the First Schedule to the Income...

        5. Patent Rights.

          1. 10.Where the relevant property consists of patent rights, any capital...

          2. 11.Where the relevant property consists of patent rights, any sale...

          3. 12.Section forty-three of the Income Tax Act, 1945, shall apply...

        6. Scientific Research Expenditure.

          1. 13.Where, on or after the first day of January, nineteen...

          2. 14.Any reference in the last preceding paragraph to scientific research...

    8. EIGHTH SCHEDULE

      COMPUTATION OF PROFITS, ETC., FOR PURPOSES OF THE PROFITS TAX.

      1. PART I Income tax allowances, deductions, etc..

        1. 1.(1) Where any of the following allowances, that is to...

        2. 2.(1) Where any of the following charges, that is to...

        3. 3.(1) Where, under Rule .7 of the Rules applicable to...

        4. 4.Where the profits of a trade or business are not...

        5. 5.(1) So much of any enactment as prevents any of...

        6. 6.(1) Section thirty-four of the Finance (No. 2) Act, 1945...

        7. 7.(1) Any reference in this Part of this Schedule to...

      2. PART II Excess Profits Tax Deductions.

        1. 1.Where the following conditions are fulfilled, that is to say—...

        2. 2.Where the following conditions are fulfilled, that is to say—...

        3. 3.Where, by virtue of paragraph (b) of subsection (1) of...

      3. PART III Miscellaneous Amendments as to Computation of Profits, Etc.

        1. 1.In paragraph 4 of the Fourth Schedule to the Finance...

        2. 2.In sub-paragraph (c) of paragraph 13 of the said Schedule,...

        3. 3.In computing the profits of a trade or business for...

        4. 4.(1) In computing the profits of a trade or business...

        5. 5.(1) Where— (a) an assurance company carries on life assurance...

    9. NINTH SCHEDULE

      DOUBLE TAXATION.

      1. PART I Provisions as to relief from Income Tax and the Profits Tax by way of credit in respect of foreign tax.

        1. Interpretation.

          1. 1.(1) In this Part of this Schedule, except where the...

        2. General.

          1. 2.(1) Subject to the provisions of this Part of this...

        3. Requirement as to residence.

          1. 3.Credit shall not be allowed against the profits tax for...

        4. Limit on total credit—the profits tax.

          1. 4.The amount of the credit to be allowed against the...

        5. Limit on total credit—income tax.

          1. 5.(1) The amount of the credit to be allowed against...

          2. 6.Without prejudice to the provisions of the last preceding paragraph,...

        6. Effect on computation of income of allowance of credit.

          1. 7.(1) Subject to the provisions of this paragraph, where credit...

          2. 8.(1) Where credit for foreign tax falls to be allowed...

        7. Special provisions as to dividends.

          1. 9.Where, in the case of any dividend, foreign tax not...

          2. 10.Where— (a) the arrangements provide, in relation to dividends of...

          3. 11.Any relief granted under section thirty-one of the Finance Act,...

        8. Miscellaneous.

          1. 12.Credit shall not be allowed under the arrangements against the...

          2. 13.(1) Subject to the provisions of paragraph 15 of this...

          3. 14.(1) The provisions of this paragraph shall have effect where,...

          4. 15.Where the amount of any credit given under the arrangements...

      2. PART II Application of Part I.

        1. 1.In the case of income which is chargeable neither to...

        2. 2.In the case of profits chargeable to excess profits tax...

        3. 3.Where a period on the profits of which foreign tax...

        4. 4.(1) In this Part of this Schedule, the expression "...

    10. TENTH SCHEDULE

      TREATMENT OF FARM ANIMALS, ETC., FOR INCOME TAX AND PROFITS TAX PURPOSES.

      1. The general rule.

        1. 1.(1) Subject to the provisions of this Schedule, animals kept...

      2. Elections for the herd basis.

        1. 2.(1) An election for the herd basis shall apply to...

        2. 3.(1) Where an election for the herd basis has effect,...

      3. Provisions applicable to special cases.

        1. 4.A farmer who, having kept a production herd of a...

        2. 5.(1) Where a farmer transfers to another person all or...

      4. Savings, interpretation and application to trades other than farming, etc..

        1. 6.Nothing in this Schedule applies to any animals kept wholly...

        2. 7.(1) In this Schedule, the expression " herd " includes...

        3. 8.(1) The preceding provisions of this Schedule shall, with the...

      5. Supplemental.

        1. 9.Where an election for the herd basis is made, every...

        2. 10.(1) The provisions of this paragraph shall have effect where,...

    11. ELEVENTH SCHEDULE

      ENACTMENTS REPEALED.

      1. PART I Miscellaneous.

      2. PART II Repeals consequential on Part IV of this Act.

      3. PART III Repeals as to relief from Double Taxation.

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